How to Form a New Company Online
Posted on: 30 April 2016 by Gael Milton
There's the right and wrong ways to form a company.
However, running your business as a limited liability company is highly recommended because it has several advantages over a sole proprietorship.
With a limited company, your finances are clearly separate from those of the company, and you won't be liable if things go wrong with the business. A sole proprietorship doesn't come with this protection benefit.
Here are other reasons why a limited liability company is better than a sole proprietorship:
· You're likely to pay less personal tax
· Your business will have a more professional image
· Getting funds from investors and lenders is easier
· Your business name is protected by law
· You can issue or sell shares
· You can fund employees' pensions as a legitimate business expense
· Transfer of ownership is much easier
With the above in mind, let's now look at the steps involved in forming a limited company. Here, we'll be describing the easiest approach, which is to form a new company online without leaving the comfort of your home or office.
1. Find a reputable online company formation service
The web abounds with online service providers that help to process company formation applications. Search the web for any of these services that cater to businesses in your country. Your best bet is to compare many options in terms of price, quality of service, and turnaround time.
Once you've found a company formation service you're cool with, proceed to their website to start your company's formation process.
2. Select company name
Most websites of company formation service providers allow you to get started immediately by entering your preferred company name. Be sure to choose a name that complies with your state or country's laws. The name must be distinctive, memorable, easy to spell and pronounce, suggestive of the products or services your business offers, and unique enough to distinguish your company from the competition.
If your preferred name is no longer available, you'd be required to select another one. But if it's available, you'll be taken to the next stage of the process.
3. Select a package
Company formation service providers offer different packages that come in varying prices. Each package is different in terms of mode of delivery of company formation documents and other important factors.
Before selecting a package, take some time to compare all the packages available and figure out which one best suits your needs. Then select your preferred option and proceed to the next stage.
4. Include your company address
You will be required to provide your company address. Once registered, this address will be displayed on public records and directories as your registered company address. You will also be required to provide your own residential address as well as those of other company directors. However, residential addresses are kept confidential.
Some company formation service providers will offer you the option to use their own service addresses, from where all correspondence would be forwarded to you via mail. This can be a smart option if you don't have a definitive company address yet.
5. Make payment and complete registration
After providing your preferred company address, proceed to checkout and make payment via the secure payment page of the provider’s website. After this step, most providers will require that you double-check your details before finally submitting your application.
After you've successfully completed the application process, your service provider will forward your application to the appropriate agency. When the application is granted, you'll be sent PDF copies of your new company incorporation documents via email or physical mail, depending on the package you chose.