Setting up a business comes with a lot of responsibilities, roles, dreams and aspirations. While the initial intent might be either to generate revenue, gain a livelihood, fulfil some needs or just to serve the society, at a certain point of time, you might consider expanding the business beyond the area where it was initially set up. This can happen for a variety of reasons. It could be to gain more customers, to have an international presence or even to have better revenue. For this expansion and growth, the first and foremost thing that is required is to have a proper company registration process.
So, what are the things that are required for complete and functional company registration? If you are keen to know about the same, read on.
- Based on the country, regulations might need foreign entrepreneurs to register themselves with the state registry and it becomes a mandate for most of the cases for doing business as an offshore company. This registry can be called a commercial registry or commerce and trade registry in many countries. An offshore company formation can be accepted after this initial process, but there are certain other things that must be fulfilled in order to get a business branch up and running.
- The form of the Offshore company registration must be decided first. For most of the cases, foreign entrepreneurs must assess and understand the standing and nature of the company as per the legal and economic rules of the country. As per many countries, companies might be registered from among the following undertakings –
- Limited Liability Company
- Joint Stock Company
- Representative Office of Foreign Merchant
- The limited liability company and joint-stock company types are the ones that are charged corporate tax on trade in the country or state. Branch and representative office registrations have no such taxation. The first two registration options also have a minimum paid-up share capital and the organisation has to adhere to the same. For the last two options, the legal offices can help in the setup. Alternatively, you could have a firm that could take care of the entire corporate and legal formalities.
- Incorporation documents are the next thing to be completed. A Decision on Foundation or a Memorandum of Association will be necessary at first. Then come the basic articles of association that define how a company will be working internally, that will be aligned with the registry rules where the initial company was registered.
- Equity capital is the next important aspect. Usually, a portion can be paid initially, and the rest of the amount can be paid within a year of registration. It would be a good idea to open a temporary bank account that can help you pay the equity easily. Banks might ask the founders about the kind of expected fund flow for the company and it is normally not difficult for foreigners to open a bank account, often getting support from the legal system.
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To conclude, registration of a company shouldn’t take longer than four days if all documentation is in order. On the contrary, the time might even be lesser based on specific requests.
About Author: My name is Adam Smith, being a business-minded and health freak guy, I always desired to share my real-life experiences about my travel and business knowledge, tips, and suggestions with others.