More and more people are trying to become their own bosses and they are coming forward with their ideas about startup companies. However, everyone needs to come a long way from having an idea to putting it into practice, and most of that road is all about learning the facts and details about how the startup actually works and what you need to know about them before you register one.
Reconsidering Key Factors
There are several things one needs to ask themselves before registering a startup company. All of them are about reconsidering the budget needed for the company, the funding, and the reliability of the company. Firstly, it needs to be determined if the company is about to be registered in someone’s name or if should it be under a legal entity. Secondly, it is important to know how many people the company would include. Lastly, there is an important question of reliability and funding. This means that it should be defined how much of the responsibility is transferred to one person and if the company is about to grow and how it would be funded.
One Person Company
If you are already running a company or you have a business on your own that you do all by yourself, this just might be the best possible option for you. In time, you can grow, but that would require different definitions of the company. In simple terms, you would have all the things a Limited Liability Partnership does, but only with the exception that you would be the only person in the company.
Limited Liability Partnership
This is a form of company that is started by two people who want to come into the business together. This form is excellent for two people who want to go into business together and it is a sort of OPC for two people. This form differs from the Private Limited Company that will be described later because it cannot make complicated transactions and its ability to grow is somewhat limited in that way. If you do not plan on expanding significantly, this is the best option for you.
Private Limited Company
If you are looking for a way to operate offshore or expand your company internationally, one of the great ways to do so is to set up a PLC in Singapore, which is considered one of the best countries to run a business from. PLC doesn’t limit you in terms of company size or expansion rate, while regulations concerning company incorporation in Singapore let you get all the necessary resources relatively easily compared to other countries. Therefore, making a company that is destined to grow big, make big and complicated financial transactions, and become a significant business means that you should definitely register your company as a Private Limited Company.
These are the short descriptions of the most common types of companies people start these days. From small one-man companies to large corporations, there is always a way to find the right description and the right form for the type of business, especially if you already have an idea about the growth and the expansion rate of your future company.