When your business starts you will need to make a choice in terms of the legal form. For instance, do you opt for a sole propietorship, a general partnership, a private limited company or a public limited company? Although various aspects play a role in this choice, e.g. liability and the market in which you start operating, our experience teaches that the level of the tax burden is ultimately decisive. With our knowledge of the tax legislation and regulations we assit you in making a well-founded choice.
Some options in legal forms:
At the start most entrepreneurs opt fo a sole propietorship. It can be incorporated quickly and at the start it offers more tax benefits than, for instance, a private limited company. A disadvantage of a sole propietorship is that you are liable for the debts of your business with your personal assets.
Do you start a business with other entrepreneurs? Then you can, for instance, opt for a general partnership. It is then important that all partners make a contribution to the business, e.g. money, goods of labor. In that case, a minimum capital is not required.
Private limited company
The capital of a private limited company is divided into shares that are owned by the shareholders. The highest authorisation is vested in these shareholders. The day-to-day management is entrusted to the directors. It is also possible for a private limited company to have a board of supervisory directors that supervises the board of directors. In case of a small private limited company the director is often also the sole shareholder: this person is then director and major shareholder (DMS).
You can opt for an association as the legal form if you have a wish or objective and you want to cooperate with others in order to realise this. An example of improvement of a shopping area, playing sports or making music together.
Do you have a certain social or idealistic objective that you want to realize, e.g. nature preservation or cultural dissemination and do you have capital available? Then the foundation is the legal form that is best in line with you.