5 Legal Steps to Consider When Founding a Company
From choosing the right entity type to contracts, five essential steps you shouldn't overlook to build the right legal foundation for your new company.
A sound legal foundation is decisive for the long-term success of your venture. We’ve compiled five important steps often overlooked during company formation.
1. Choose the right entity type
The choice between a limited liability company, joint-stock company, or sole proprietorship directly affects taxation, liability, and future investment. Determining the most suitable type from the outset avoids costly conversions later.
2. Clarify the ownership structure
Matters such as shareholding ratios, decision-making mechanisms, and profit distribution should be clearly set out in a shareholders’ agreement. This document is the single most important safeguard against future disputes.
3. Draft the articles of association carefully
The articles of association registered with the trade registry define the company’s scope of activity, capital, and management structure. It is important to add provisions specific to your company rather than relying on standard templates.
4. Build your contract and IP infrastructure
Your customer, supplier, and employee contracts, along with trademark and domain registrations, should be prepared before operations begin.
5. Plan tax and administrative obligations
Tax office, social security, and required permit processes should be planned from the start. Meeting these obligations on time prevents administrative fines.
Contact our team to secure your formation process from start to finish.