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What are the Fundamental Steps to Start a Company?

For many national and international investors, the idea of establishing a new company sounds very attractive, since it allows them to increase their market and business. However, it is necessary to comply with all the fundamental steps to achieve it. To do this, some aspects such as the market, capital, product demand, competition, among others, etc. must be taken into account. 

In this article, Company incorporation experts help you answer some questions that may arise if you want to know how the incorporation of a company works.

Can I establish a company or how does the modality work?

This is one of the most common questions that accounting firms commonly receives. There are two ways in which a company can be incorporated:

  1. Natural Person: In this context, the company belongs to the person who constitutes it as the owner. In the event that this person obtains a debt, he/she must respond with the company or other assets that are within his / her patrimony. 
  2. Legal Person: If you want to establish the company as a legal person, there must be a Separation of Assets. This is governed to avoid and take care of the company from liens or responsibilities of any of the partners who have debts or credits.

How do I start to establish a company?

It is important that you take into account each step so that the formation of your micro, small or medium-sized business is properly completed. But with the help of Company incorporation professionals, you can have better advice for each step. 

1. Search and reserve a name for the company

First of all, the first thing to do is to choose a name for your company. You only need your Identity Document or passport, if you are a foreign member, you must complete the Name Reservation Request form. 

2. Prepare the minutes with the help of a lawyer

The minute is a document that must be prepared by a lawyer and where the act of incorporation of the company must be taken into account. For this, you must have the identity document of the owner or partners of the company, the description of the economic activity, the capital, among other requirements that you can obtain in the company constitution section. 

3. Contribute money or goods accredited in a document issued

This third step includes providing an amount of money or property such as real estate or furniture, which is credited in documents. Thus, the transfer of your company will be detailed, together with the public deed and the valuation report. 

In addition, it is necessary to carry out an inventory of goods, in case the company is made up of several partners. 

4. Prepare the Public Deed 

Now that you have the minutes together with the contribution of money or goods, the next procedure can be followed, which is the preparation of Public Deed. For this, it is important to draft the Articles of Incorporation and take it to a notary for review. Then, the Public Deed will be generated. This is a document that indicates that the entire process is legal. In addition, it will be possible to have the signature of all the partners. 

5. Registration in the Public Registry 

This step will be carried out by a notary, but it will be important to have Public Deed so that everything is organized. 

Establishing a company allows you to have many benefits, such as exposing your brand legally, offering jobs to thousands of people, and even accessing bank loans. 

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