The process of setting up a company, when and where to do?

company register

   Setting up a company is a step towards expanding the business to another level, which increases opportunities but also comes with higher costs and procedures. Therefore, we should thoroughly examine beforehand whether we really need or want to establish a company to what extent.

table of contents

Company registration process.
Where can a company register?
How much income warrants company registration?

Company registration process.

The company registration process can be divided into three stages.

1. Data Preparation
2. Document Preparation
3. Registration

Stage 1: Data Preparation

  • Shareholders: Who are the shareholders?
  • Share Types: Study the types of shares, whether they are ordinary shares, preference shares, and determine the distribution of shares among shareholders.
  • Registered Capital: The actual amount of capital invested or the amount of capital intended to be disclosed to others.
  • Head Office: Decide where the company’s headquarters will be located.
  • Accountant: Find an accounting firm early on because accounting tasks should start from the first few months.
  • Board of Directors: Identify who will serve on the board of directors and what powers they will have.
  • Objectives: Clearly define the company’s objectives, such as importing/exporting, operating a restaurant, etc.

Stage 2: Document Preparation

  • Document Preparation: When registering a company, there are several documents to prepare. If we hire a law firm or an accounting firm, they will take care of most of the documents, and we only need to sign our name.
  • However, if we want to prepare the documents ourselves, I recommend consulting this website:>>>>Guidelines from the Department of Business Development

Stage 3: Registration

  • Registration can be done either online or offline (by submitting documents manually).
  • Ready to pay the registration fee.

Where can a company register?

   Company registration can be done both online (via computer) and offline (by submitting documents manually at the local registrar’s office).
When submitting online, it’s recommended to use Google Chrome.
For offline submissions, visit the “Office of Partnership and Company Registration” office in the area where you intend to establish the company’s headquarters. To simplify, determine which district or area your home or office is located in, then search for the nearest registrar’s office.

   It’s advisable to call the registrar’s office beforehand to confirm if your location falls within their jurisdiction. However, it’s generally not difficult as they are usually divided by provinces.

How much income warrants company registration?

   The popular question “How much income do you need to start a company?” the first thing to mention is that the law doesn’t impose a specific income requirement for company registration. Therefore, it depends on factors such as experience, business needs, and the conditions of the venture to determine when to proceed. For example:

– Operating with multiple individuals who seek formalization and clearer verification processes.
– The venture requires licensing, and the condition is to register as a company.
– Income reaches the threshold for value-added tax (VAT), and there’s a preference not to use personal names for VAT registration.
– Partnerships are only sought with “companies.”
– Investors are willing to invest, and establishing a company provides clear documentation for shareholding.
– Business roadmap or other necessities.

summarize

   If starting a business with others, it’s advisable to register a company. Even though expenses may increase, having the status of a “company” provides legal support, control, oversight, and management in case of issues. This is more secure than operating without any legal entity.

   If you’re interested in contacting us to assist in company formation, including drafting partnership agreements and providing essential legal documents for your business, please feel free to reach out to us immediately.

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