For an LLC to be established, it must have the name, at least one member of the company and one share, one director, registered office, and business address.
The establishment procedure is not complicated because all the necessary documents are in the form of previously prepared forms (forms) that only need to be filled in appropriately.
Thus, for example, the application for founding a company, in addition to details about the company itself (eg company name, registered office, business address), must also contain basic information about the company’s directors, founders, and their shares in the company.
Completing such forms is not demanding and can be done quickly if all the necessary information (eg addresses of directors and members of the company, places, and dates of their birth) is available to the person filling them out (eg the only member of the company or his proxy).
After filling in, such forms must be submitted to the competent registration authority (Register of Companies), and the application can be done online, where it is possible to make a reservation of the company’s name.
After the application, the competent body must submit additional prescribed forms (signed statements of members and directors of the company) within a further period of 20 working days. If the competent authority does not receive all the necessary documents within that period, the registration procedure must be restarted.
People often make many mistakes when creating an LLC, and many of them have been avoided in a very easy way. Read below what these mistakes are and how not to let them happen to you.
Paperwork
Is there the same worse than when you do some work, wait in line, and after an hour of patient waiting you realize that everything was in vain because, guess what – you are missing one piece of paper.
So, before you get into all of this, inquire about the necessary documentation so you don’t waste precious time. If, on the other hand, you think this is too big a job for you, you can visit llcguys.com and do everything in a much easier way.
You have no alternative to the name
It often happens that people come up with one name for a company, without a backup plan. Why do you even need a backup plan for this? Let’s just say you’ll first have to check with the commercial court to see if it already has a registered business under that name because if it does, you’ll have to come up with a new name.
What you have to pay special attention to is every letter. If you write Desgn in the company name instead of Design, know that the business will remain so registered because there is no possibility of change.
Don’t forget to provide an address
In most countries, you will not be able to create an LLC unless you provide an official address.
You have not opened a bank account
This may be something you haven’t thought about, but it’s certainly something that will take you one step back. A business entity can have open accounts with several banks, according to its choice.
The establishment of a limited liability company enables the achievement of certain goals that exceed the capabilities of the individual, and it is necessary to unite people and property to raise more capital (which is especially characteristic of listed companies) or to achieve larger economic ventures, as well as performing certain economic activities (activities of banks, insurance organizations, broker-dealer companies…) that can be performed only in the form of a company, and not in the form of entrepreneurs.
Making a seal
After completing the registration, you make a stamp with the name of your company. In order to be able to make a stamp, you need to enclose a copy of the decision on the company’s entry in the court register.
Registration procedure d.o.o. begins with the founding decision, if there is only one founder, or with the founding contract if there are several founders. The founders can be domestic or foreign, legal or natural persons. So, the essential difference in this form of organization is responsibility!
Liability for business is limited, so the founder or more of them are not liable for the company’s obligations with their personal property, but only with the amount of the entered share. The costs of founding a company are borne by the founders in proportion to their shares and they cannot be paid from the share capital.
Advantages and disadvantages of a limited liability company
The advantages of a limited liability company are limited liability for obligations, continuity, relative ease of transfer, the notion of relative stability and easier access to sources of funding, hiring managers, and skilled workers. In addition, an LLC is considered a stable form of economic activity in relation to trades those banks and suppliers consider to be an additional business.
Thus, as a fundamental advantage of a limited liability company can be singled out limited liability due to the fact that the founder thus protects his private property, that is, it bears only business risk.
Likewise, the founder is able to decide whether to in the case when the company is not liquid to reach for its own sources such as e.g. his savings, ie. the founder for the obligations of the company will not be liable with all his assets as is the case with a tradesman who in a situation of non-liquidity must reach for his property.
What we can single out as the largest minor LLC creation is the high initial capital. In addition to the cost of share capital, there are also the costs of a lawyer, a notary public, and additional costs during liquidation. However, this is not a reason to give up your dreams and ideas but to be persistent and go towards that goal.
Business and the environment are unpredictable, ie. Businesses don’t know how to develop a product or service, what the competition intends to do, whether customer attitudes change, and fig.
Therefore, it is very important to achieve a sustainable competitive advantage and follow trends. The same so employee motivation and quality of work are very important. If employees are motivated, their efficiency and effectiveness increase.
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