Company Formation 101
What Kind of Company Formation Types Are There?
Whether incorporating in Europe, Asia, the U.S. or any other country, company formation is pretty much the same in general terms. Sure, the local laws, cultures and regulations apply, and those are certainly wildly different from country to country, and even from state to state, but the basics are usually the same. There are two options to choose from at first, and then a few possibilities after you make this first initial decision.
The first decision you must make in your company formation efforts is whether you want to start up a brand new company from scratch, or whether you want to purchase a ready made legally titled corporation, also called a shelf company. Obviously, each type of company formation has its own inherent benefits, and most likely your business interests will tend more to one of these two choices than the other.
New Company or Shelf Company?
If you already have a company title in mind, for instance, and you have some reason to want or need that particular name, then purchasing a company that is already named and incorporated is not the way you want to go. But if you need to be up and running as quickly as possible, buying the rights to a ready made company is the quickest path to business ownership, and will be more attractive to you.
Also, if you are looking for the cheapest possible path to company formation and incorporation, then opening a business from scratch will definitely appeal to you. If however, you want immediate credibility in the business community, buying an existing company that shows some age to it can give you the desired result. Also, buying an existing business that has already passed regulatory and legal scrutiny can give you instant cache if you are looking to incorporate in a certain area. If you want to show a classy New York address for a more financial appearance or a Hollywood address because your business is in the entertainment field, buying a shelf company already incorporated in those locales gives you instant respect and admiration.
Company Formation Decisions
Once you decide whether you will be incorporating from the ground up or buying an existing business, there are plenty of other company formation decisions to address. Do you need a virtual office that is in address and mail service only, or will you need a fully staffed and functional physical presence? Are you looking for tax advantages or access to trade routes? Will you be the only owner, or would you prefer to have other directors listed? These are only a few of the choices you must make, and then you of course have to navigate the different cultural and legal obstacle courses that each nationality presents.
So when dealing with a company formation specialist, insist on a firm that has “been there and done that” with reference to incorporating under the special set of circumstances that apply to you. But also demand that the company formation experts you employ deal only with respected members of the legal and accounting community that live and work in the jurisdiction of your choosing. Changes occur every day in the business world, and this will ensure your company formation efforts are as swift and pain-free as possible.