The downturn caused by the pandemic hopefully will be followed by a renewed strengthening of the economy. The growing number of State aids, tenders and proactiveness of private investors are all helping entrepreneurs with marketable ideas to get started. In this article, we will show you, among other things, what issues start-up owners should consider upom preparing their business for success – from the start.
Legal form and other basic information about the company
It is up to the owner(s) to decide in what form the corporate will operate – the most common choice due to its limited liability nature is the LLC. Moreover, the following information shall be decided upon the incorporation: (i) the name of the entity, which is of outstanding importance because of brand value, (ii) the registered office, (iii) areas of activity, (iv) the share capital, and (v) the first executives.
Registration in official and chamber records
In addition to registration with the tax authorities and the court of registry, depending on the nature of the activity, the business may be required to obtain official permits, consider joining to a chamber or association of the concerned industry.
Drafting of basic contracts
Whether the corporate intends to be a manufacturer, distributor, or service provider, it is advisable to plan which contracts it aims to use in its activities to protect its interests. Although samples can be downloaded from the Internet free of charge, they rarely include measures to protect the company based on industry knowledge and practice, so we do not recommend using them without review.
Whether the start-up is dealing with a credit institution or a private investor to finance its operations, the negotiation will start from a subordinate position. Ensuring that the initial financial vulnerability does not lead to a disproportionately unfavorable commitment, it is worth asking for the help of a consultant discussing the loan or investment agreement and exploring opportunities.
Many businesses are afraid of setting up employment relationships because of potentially high financial exposure. However, according to our practice, hiring in a committed and orderly way is essential for growth. At the same time, it is good to know that start-ups can also apply for wage subsidies.
If a company aims to implement an excellent concept, it is essential to protect the intellectual and industrial property rights of the idea and the implemented work. Deciding which protection tool will best help to secure innovation and material recognition is the result of a complex professional work.
As part of our start-up support service, our goal is to help masterminds who do not necessarily have the economic and legal knowledge, to think through the most important aspects and perform necessary operational tasks. The work starts at preparation of founding documents and lasts until official registrations and application for subsidies.