Different company forms suit different businesses, so it is important that you look at responsibility, the financial risk and whether you should start alone or together with someone. The most common forms of company are sole proprietorship’s, trading companies and joint-stock companies. Things that can influence your choice of company form include. Whether you will have a parallel income from an employment. If you have several sources of income and choose a sole proprietorship, you must consider reviewing your total income tax to avoid a large back tax.
Will you take out a loan to buy things for the company. Then it can be advantageous to have a limited liability company that is its own legal entity. The company, and not you, is responsible for the loans you take out. Whether you can imagine investing in share capital. You avoid this with a sole proprietorship. It is also cheaper to register. Your company name should make it easier for customers to find you and must be distinguishable from other companies.
The company name must be consistent with the business your company conducts and must not be misleading. But should you want to expand your business in the future, it is still good if the name is not too narrow. There are some name rules for company forms, including that a limited liability company must contain ab or limited liability company in the name. The same applies to trading companies, limited partnerships and economic associations, but then with those words in the company name instead.
In the case of individual companies, you do not need to register your company name, but if you do, the company name will be unique in your county. Try to make the company name easy to remember and preferably easy to memorize. You can either check with the companies registration office or by registering your company name. If you register your company name with, you will receive feedback if your company name is not approved and can then submit new company name proposals without incurring an additional cost.
It’s easy to miss that you should have a domain name that plays with your business name, so do this in the same vein. If your intended domain name is taken, you have to ask yourself whether you should really go with the business name you thought of, or whether you should try to find something else. This is because the website and domain name are the hub of your future marketing. More on this in the section on marketing.