There are many reasons to incorporate a company when you start doing your own business. First of all, this process lets you act like a separate legal entity and use all privileges of a certain jurisdiction. What benefits can incorporation bring you as a businessman? The main advantages include asset protection, asset transfer, low tax rates and many others. Registration process tends to be easy in many countries now. Follow our recommendations below to find out more.

Company type and purpose: make a decision

What do you offer? Products or services? Do you know whether your activities are legal in a chosen country? The most common type of company is LLC or IBC. It is suitable for most types of activity. However, consider your plans and think about physical office need, taxation matters, hiring personnel and obtaining necessary permissions. This might affect your company type as well.

Business jurisdiction and type of activity

While setting up a business, you also need to choose the best place to settle. Jurisdiction means nearly everything when you go international with your company. Do not forget that certain business activities require permits or licenses. In different countries it is easier or more complicated to obtain the necessary license. This process can be tricky, depending on the situation. Therefore, it is reasonable to think about jurisdiction matters before starting the registration process. This will play a crucial role in planning your time and financial expenses.

Company’s name matters Company’s initials after the name indicate the type of your business. For example, if you choose the limited liability company you can only add LLC or Ltd initials after the name. When you go with other types of entity, there are different options to add to your name. Important naming rule is also not to copy someone else’s name. Companies have to operate with a unique name, which is not used in the same jurisdiction. Business names also have to respond to all legal, moral and other requirements of a chosen jurisdiction.

Hiring personnel and directors

Depending on a company type, the creation of a governing body can differ. In LLCs, directors are mostly chosen without any special procedures. Some corporation types require appointing a director and some can use voting too. Also, there might be different professionalism criteria for a governor. There are less requirements for hiring employers but it is still important to monitor them, especially if your business requires licenses or permits.

Renewing documents annually

Most jurisdictions worldwide have requirements for renewing documents of the company. Which documents have to be reviewed? Most often they include licenses, permits and intellectual property documents. Moreover, paying taxes is also a periodic process you need to control. Having a real physical office is useful for controlling all periodic payments and document renewals. Nevertheless, it is crucial to constantly monitor business state. To finalize, a proper incorporation of the company is a reasonable choice for international business. A legal entity, which meets all requirements of the chosen jurisdiction, is the best option for entrepreneurs who want to act within the legal scope.