A sole proprietorship, or sole proprietorship as it is also called, is a good option if you want to start your own business yourself. This form of company does not require start-up capital and is therefore completely free to start. Instead of salary, you make your own withdrawals and instead of employer contributions, you pay so-called personal contributions.
You can easily apply for this via the companies registration office’s e-service. There you can also register for vat reporting, as an employer , and upload supplementary documents if necessary. Individual companies do not need to register a company name with the companies registration office, although it is recommended if you want to protect the company name in the county where the company is registered.
How easy it is to start a sole proprietorship limited company there are two types of limited companies private and public. A private limited company is suitable for smaller businesses where there are several of you who want to start a company together. The requirement for investment capital in the limited company instead as it was before. Public limited companies require a share capital and are thus best suited for larger businesses.
The joint-stock company is its own legal entity, which means that it is the company that has sole responsibility for the business’s indebtedness. As the owner of a limited company, you are employed by the company, just like any other employee. This means that the company must pay tax as well as social security contributions for you. As a shareholder, however, you can share in the company’s profit in the form of dividends, which is not possible in an individual company.
Here’s how to start a limited company, decide to start a limited company with other founders (you who start an ab are called founders). Create a memorandum of association. This document states how much must be paid for each share as well as details of the company’s officers. Create articles of association.
This must contain information about the company’s operations and name. Pay shares. Shares are shares in the company and are paid in cash to a special bank account. Not all founders have to pay shares, but those who do must sign a share subscription. The bank arranges relevant banking services. A certificate that the share capital has been paid up must be forwarded to the companies registration office. The foundation document is signed.