Company setup costs vary depending on several factors. Factors such as type and size of business, number of workers and years in operation are all taken into consideration when setting up a company. The more the company grows, the more money it needs to invest in equipment and services to grow as well. If you’re looking to set up a company, here are 5 tips to help you get started inexpensively.
Firstly, consider asset protection. If you want to protect your assets, offshore incorporation may not be a good idea. The most sensible option for an individual looking to incorporate a company is to set up a Limited Liability Company (LLC). This means that all the business dealings take place in one location, making tax issues and asset protection much easier to manage. There’s also a lot of flexibility available with an LLC, meaning that a company setup can vary from location to location.
Next, consider legal documents and company registration for your RAK free zone company setup. Before you get started, you’ll need to create a company to register and complete other legal documents. Company registration is mandatory in most countries, so make sure you get all of the relevant forms filed. Company owners may also be required to submit annual reports to the Board of Directors, which must be submitted to the appropriate authority.
Once you have company setup and company registration completed, you’ll need to decide on the type of business model you want to operate. There are several options, including limited liability partnerships (LLPs), corporation (or sole proprietorship) and partnerships (or proprietorship). The type of company setup you choose depends on the products and services that your startup intends to provide. If you already have employees and/or warehouse space, you may want to consider incorporating as a corporation.
After Shams free zone company setup, the next step is to determine how to reach out to potential investors. Depending on the products and services that your startup offers, you can use your attorney, accountant or financial adviser to draw up the proper paperwork and pitch to potential investors. Some startups use online resources such as angel networks, to solicit investment. Investors can evaluate the startup using the cap table, which allows you to calculate a potential value for funding. Investors will need to provide a personal guarantee, as well as providing a number of assets that could be offered as collateral.
Once you have investor contacts and the cap table established, you can proceed to company setup and company formation.