Setting up a business involves certain legal formalities. Such a project requires legal, social and tax expertise. Unfortunately, few entrepreneurs have them. Here are some tips for starting a business.

Learn about corporate law and know the constitution of a company

A company must follow rules of operation and incorporation. It is impossible to create a company without knowing the legal bases of company law. The latter governs the life of societies containing all the regulations to be respected. Corporate law is applicable to all forms of companies including public limited companies. Limited liability companies and simplified joint-stock companies are also included. Corporate law also covers a wide range of areas. One can find, for example, the constitution of societies and the functioning of societies. The latter particularly concerns the rules to be respected in the management. Company law also relates to the liquidation of companies and capital increases. In addition, mergers as well as the relations between shareholders and managers are part of it. Company law also covers relations between companies and their third parties

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The contract of incorporation of a company ties the partners together. To be valid, the contract of incorporation of a company must follow certain formalities. Among the general rules of contracts to be respected is the free consent of the partners. There are also the specific conditions of incorporation. Note that business contracts are specific contracts. We can also find the conditions specific to each type of business. For example, the share capital of an SA must be at least €37,000. Each legal form of a company generally has its own rules. The partnership contract is the clause establishing the company. It is formalized in the articles of association. The first step in the incorporation of a company is the drafting of the articles of association. We then carry out several formalities for the company to start its activity.

Learn about the different legal forms

There are several types of businesses. We are talking about legal forms. The choice of legal form varies according to many factors. It also depends on the nature of the business and the number of partners. You can find, for example, single-partner companies like the EURL. The EURL is a personal limited liability company. The shareholder sets its share capital. At the time of its incorporation, 20% of the contributions must be paid up. This is a limited company with a single partner.

There is also SASU, or a one-person simplified joint-stock company. It’s a one-partner company. Shareholders freely determine its share capital. Half of the cash contributions must be paid into the constitution. For contributions in kind, an auditor must be appointed. There are also multi-partner companies like LLC. It’s a limited liability corporation.

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