Company formation refers to the process of incorporating a company, which leads to registration in the official public register. Company formation includes the shareholders’ agreement to start a business, agreement on the company’s management structure, initial contributions to the its capital, the appointment of directors and the establishment of other provisions for shareholders and company officials and their relations. Deciding on a company address is vital even at this stage, but there is much more to incorporating a company than meets the eye. Before you even get started, there is a series of important decisions you will have to make regarding your future business, and these decisions will have a dramatic effect on all other aspects, including the company formation procedure, the documents required and the taxes your company will have to pay.
For convenience, we will split the whole procedure into three main stages, but you should bear in mind that, in reality, the incorporation procedure is much more complex and there are many factors to be taken into account. Therefore, we strongly recommend that you contact our legal team for full information.
Main stages in company formation
If you wish to start a business, you will have to register a company. However, there are many questions and issues to consider during the company formation process, such as where to register the company, what legal structure to choose, what documents you will need, how to reduce your expenses and tax burden, what the procedure involves, etc. Confidus Solutions is here to clarify everything and give you a clear picture of the whole incorporation process, as well as providing legal advice on how to achieve your goals and which solutions would be most efficient for you.
For convenience, we can split the whole company incorporation process into three major stages: preparation, when all the important decisions regarding jurisdiction and legal structure are taken; registration, when the company’s legal documents are signed and submitted to the national company register; and finalisation — after the company is registered, there are some things you will need to take care of before starting your business, such as opening a bank account and acquiring VAT status (if required). You can read more about this below.
Preparation: things to be done prior to company formation
Before even drafting the documents, there are two decisions you will need to make in order to determine subsequent action: what jurisdiction are you going to incorporate your company in? And, what legal structure are you going to choose? These two factors will determine a wide range of things, such as the company formation procedure, the documents required and the taxes your company will have to pay. You can learn more about the top jurisdictions and legal structures on our website.
After you have decided where your company is going to be located and what legal form it is going to take, you will need to think about the company name and legal address. Usually, there are certain requirements that the company name must meet, but these vary from country to country, so it is best to check the availability of your desired name before drafting any documents. A legal address can usually be rented, together with virtual office services, if required.
Registering your company
Once the preparatory steps are complete and all relevant decisions have been made, it is time to start the process of registering the company. This process varies greatly depending on the jurisdiction in question, and therefore we can provide only general guidelines here.
First, contact your lawyers and start drafting the required documents. Most of the incorporation documents should be signed in front of a notary public, with signatures being notarised (and apostilled, if required). Usually, document preparation takes between one and five days. Also, bear in mind that the initial contributions to the company’s equity capital must be paid before the documents are submitted to the company register. Usually, banks open a temporary bank account for the sole purpose of depositing the equity capital.
Once all documents have been drafted and signed, they must be submitted to the local company register. The company register checks the documents to see if they comply with national laws and regulations, and to ensure that the proposed company shareholders and directors are free of any registered limitations. Company registration usually takes between three and 14 days, depending on the country.
Finalisation: preparing your company to start doing business
After your company has been entered into the commercial register, it is almost fully operational. The only outstanding tasks are to open a bank account and acquire a VAT number, if required. Also, depending on your business’s scope of activity you may need additional licences and/or permits to operate.
Our professional team of lawyers will provide you with detailed consultation and prepare a legal opinion to help you evaluate all risks and factors correctly. Together, we will find the most efficient, unique solution to ensure you reach your personal goals.
We have the experience and resources to provide you with company formation services worldwide. Before incorporating your company, we will help you create an autonomous corporate structure aimed at minimising taxes and lowering expenses. We can also provide any other relevant business support services required, from a legal address to help with business immigration. Contact us now to proceed!