Some people have very vague idea of what a company is and what it should be. Yet, if you want to establish a company, you need to be knowledgeable of what company is and the different steps on establishing a legitimate company. A company is definitely a separate legal entity that is formed for the sole purpose of conducting a business. Since it is incorporated, it has a distinctive characteristic or legal identity relative to the members of the company.
Companies, just like human entities, have different characteristics. They can be private limited companies or public limited companies. They can also be private companies unlimited by shares and private companies limited by guarantee. There are also other forms of companies such as the community interest companies which work for the benefit of the community; likewise, there are other variations of companies. Yet, it is sufficient to know that the most common setups of companies are the private limited companies.
The setups of companies usually vary from country to country, and usually, there are variations in the process of registering a company among different countries. The important thing, however, is that you should know which setup is the most appropriate for your business scheme. To know which setup would be appropriate for your business scheme, you need to understand each setup and how each set up varies from other company setups. Likewise, you need to learn which type of tax payment setup is associated with a particular company setup. There are plenty of literatures and articles about the advantages and disadvantages of each setup of company, and it would be advantageous to you if you read some of these articles. Moreover, it would be of great advantage to you if you would review Freelance limited company tax and sole proprietorship tax payment schemes to get a glimpse of the tax reprieve you will get in each of these company setups.
There are certain questions that would linger in your mind once you decide to register your company. Some of these questions include: “How you are going to register your company? What type of company setup to choose? How long would the registration be? What name you are going to choose for your company? Where can you get the memorandum and the so-called articles of association?” These questions can be easily answered when you begin to register your company.
The success of your business primarily depends on the initial choices that you make. If your decisions at the onset are correct, the consequences of these decisions will trickle down to your succeeding business decisions, and eventually, you will reap the benefits and consequences of your previous right decisions. However, if at the onset, you have already committed serious blunders, especially, in the choosing of the type of setup for your company and other initial decisions, you would also reap the negative effects of such blatantly erroneous decisions. The axiom that says, “You reap what you sow,” definitely applies to any business undertaking. Hence, you should act with prudence and wisdom in every business decision that you make in the light of the wisdom and advice of some of the pundits in the business world.