Company formation

Posted by Cynthia Smith on October 1st, 2021

Company formation refers to the process of establishing a company, which leads to entry in the official public register. The incorporation of a company includes the partnership agreement establishing a company, the agreement on the governance structure of the company, the contribution to the capital, the appointment of directors and the establishment of other provisions for shareholders and company officials and their relationships. The decision for a company address is already important at this stage, but setting up a company involves much more than meets the eye. Before you even get started, there are a number of important decisions you need to make about your future business that will dramatically affect all other aspects including the formation process, required documents, and taxes of your business.

For the sake of simplicity, we will break the entire process down into three main stages, but you should keep in mind that the actual incorporation process is much more complex and there are many factors to consider. Therefore, we strongly encourage you to contact our legal team for complete information.

Main phases of company formation
If you want to start a business, you need to register a business. However, there are many questions and issues to consider during the business start-up process, such as: etc. Confidus Solutions is here to clarify everything and give you a clear overview of the entire formation process and give you legal advice on how to achieve your goals and which solutions are most efficient for you.

For the sake of simplicity, we can divide the entire company formation process into three main phases: preparation, when all important decisions regarding jurisdiction and legal form have been made; Registration when the company\'s legal documents are signed and filed with the national business register; and Closing - After registering the company, there are a few things you need to do before starting your business, such as: B. opening a bank account and acquiring VAT status (if necessary). You can read more about this below.

Preparation: Things to do before starting a company
Before preparing the documents, you need to make two decisions to determine what to do next: In which jurisdiction will you start your business? And which legal form will you choose? These two factors determine a wide variety of things, such as the formation process, the documents required, and the taxes your business will have to pay. Visit our website to learn more about the main jurisdictions and legal structures.

After you have decided where your company is located and what legal form it should take, you have to think about the company name and legal address. There are usually specific requirements for the company name to meet, but these vary from country to country so it is best to check the availability of your desired name before creating any documents. A legal address can usually be rented along with virtual office services if required.

Register your company
Once the preparatory steps have been completed and all relevant decisions have been made, company registration can begin. This process is very different depending on the legal system, so we can only give general guidelines here.

First, contact your lawyers and start preparing the required documents. Most deeds of incorporation should be signed in front of a notary, with the signatures notarized (and apostilled if necessary). It usually takes between one and five days to create a document. Please also bear in mind that the initial contributions to the company\'s equity must be made before the documents are submitted to the company register. Usually banks open a temporary bank account only for the purpose of paying in equity.

After all documents have been created and signed, they must be submitted to the local company register. The company register reviews the documents to determine if they comply with national laws and regulations and to ensure that the proposed shareholders and directors of the company are free from registered restrictions. 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.