Starting your own business can be both exciting and scary. To help you understand what it takes to start and run a successful business take into consideration following.
CAREFULLY CHOOSE FORM OF THE COMPANY
There several different types of company: Limited Liability Company (LLC), Joint-stock Company (JSC), Limited Partnership Company (LPC) and General Partnership Company (GPC). Also, you can register as Sole Proprietor.
Differences between all these types are significant. From the procedure and costs of incorporation to cost of running a business. Also, you must have in mind that every state has its own regulations referring to minimum prescribed share capital. For example, in Serbia minimal share capital for LLC is 100,00 RSD, approximately 0.85 EUR, while in Slovenia is 7.500,00 EUR.
Furthermore, those who register their business as Sole Proprietor are personally liable for all financial obligations of the business. On the other hand, owners of the LLC are shielded from personal liability as LLC is liable for its financial obligations.
To fully understand this, ask for an opinion from a legal consultant or Corporate Law Lawyer.
TAKE CARE OF YOUR TAXES
Knowledge of taxation system is what defines highly successful business from less successful. Every country and every state have its own regulations and laws on taxes, and no administration will go easy on you when it comes down to tax obligations. Therefore, when deciding to run a business in Europe take close attention to these tax rates:
Corporate Income Tax;
Value Added Tax;
Personal Income Tax;
Annual Income Tax.
Additionally, always look for favorable tax treatment. This can be stipulated by bilateral or multilateral agreements between countries. Most common agreements are Double Taxation Treaty, a type of international agreement to mitigate the effects of double taxation on multinational businesses. For instance, Serbia has signed this agreement with more than 55 countries.
A reliable accountant can be the best partner for your business when it comes down to taxes.
THINK ABOUT THE WAYS YOU WILL EXPAND YOUR BUSINESS
Even when you are at the very beginning of your business carrier, you must have in mind where you want to go with your business. The first step toward this is choosing the right business activity. The second step is planning how to expand the services you offer, and which new markets will suit your business type best.
When expanding to new markets, you will need to know the business culture, business opportunities, and tax and political regime. All of this will determine how well you will adapt to new circumstances.
SURROUND YOURSELF WITH TRUSTWORTHY ASSOCIATES
Although doing everything on your own seems more economical and practical approach to doing business in the beginning, on a long-term basis this cannot be done. First, it is not possible to draft all the contract, keep tracks of your books and accounts, promote your business on social media and other business-oriented platforms and focus on your business activities.
So, what you need to do is to surround yourself with associates that have both knowledge and experience in the fields of law and accounting. If you are not in the marketing niche, you should consider connecting with someone who has mastered this service to help you grow your business.