Incorporation itself is not difficult and can be completed quickly. What needs thought is the detail fixed on the day: the objects, the registered capital, the shareholding and the directors' authority. These can be changed later, but some changes carry cost and consequences.
The common example is capital set low to save the fee, only for the owner to find it will not support the work permits the business needs, or does not meet the qualification threshold for a tender.
We work back from what the business intends to do over the next three to five years, and set the particulars to carry that from the start.
The steps
- Reserve the name, which must not be identical or similar to one already registered.
- Set objects wide enough for what the business will actually do, and for what is likely to be added.
- Fix the registered capital, the shareholding and the shareholder list.
- Register the memorandum and incorporate, which can be done together.
- Obtain the tax ID and register for VAT when the threshold is reached or registration is otherwise needed.
- Register as an employer with the Social Security Office once there are staff.
- Open the company bank account, for which each bank sets its own additional requirements.
Decisions to make before the day
- Registered capital sufficient for the number of work permits required.
- The shareholding, particularly where a shareholder is foreign, which determines the company's status in law.
- Whether a director signs alone or two must sign jointly.
- The registered address, which needs documentary proof of the right to use it.
- The accounting period, which fixes the closing date every year afterwards.
Fees and required documents are administrative rules that change periodically. Tell us what the business will do and how many staff it expects, and the appropriate capital can be calculated.