Legal Plan

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Index of Manual for developing a business plan

  1. Manual to prepare a Business Plan
  2. Presentation of the business project
  3. Basic information of the company
  4. Market study
  5. Marketing and commercial plan
  6. Production and Operations Plan
  7. Human Resources Plan
  8. Economic-financial plan
  9. Analysis of the feasibility of the project
  10. Legal Plan
  11. Executive Summary

In the basic data of the company we anticipated the legal form that the company will adopt, in this section, we must justify why and the implications at the corporate and tax level that it will have.

The objective of the legal plan is to determine the legal form that the company will adopt and all aspects related to its daily activity in fiscal and legal terms. We can also include if there is any type of help for the creation of companies, subsidies, bonuses ... that can benefit our society.

Main elements of a legal plan

  • Aid for business creation

In the event that we have found an institution that supports us when creating our company or there are subsidies for these purposes, we must include them in this section. Each country, and even each region, has different institutions that help entrepreneurs. It is convenient to go to them and interact with the entrepreneurial ecosystem in our area to establish synergies and keep abreast of news.

  • Brand and trade name

We must choose the commercial name and company name that our company will have and investigate whether or not it is registered in the country where we want to operate and also internationally. If in the future we want to register the name and brand internationally, we must make sure that it is not already registered and we will consider possible expenses for this item. If it is a franchise, we must also take into account the contractual aspects to know how to use it.

  • Patent

In the event that our business idea is based on a new, original and exclusive invention, we must patent it to acquire exclusive marketing rights, at least for a period of time. It is the recognition of the advances in our research and development that must belong to the company in order to profit from its commercialization. We must go to the trademark and patent office of our region and find out about the procedures to follow to obtain the patent. It must be taken into account that in each country the legislation and procedures are different.

  • Legal form

Determining the legal form that we will give to our company is essential to be able to comply with the fiscal and legal obligations that derive from it. In each country, there is a wide range of possibilities, so it will be necessary to analyze the advantages and disadvantages of each of them and depending on our situation, choose one or the other.

In general terms, to make the decision to choose the legal form wherever you are, the following basic aspects must be taken into account;

  • No. Members who will form it: It depends on whether we are going to be alone, we are going to associate several people or we contemplate the annexation of new partners.
  • Responsibility and administrative bodies: If we are going to be several partners, it will be necessary to determine the responsibility that each of them acquires and who will manage the company. Of course, everything must be in writing and signed by all parties.
  • Initial capital and shareholding percentage: We must determine with what share capital we start, who will contribute it and what percentage of the company will acquire. This point is basic to know if we will take one legal form or another.
  • Tax implications: Being subject to one tax rate or another, having some tax obligations or others, is key when choosing the legal form that we are going to take. Tax obligations will take us a large part of our day to day in administrative tasks and will influence the accounting of the company. We must inform ourselves well and be aware of our duties and obligations of our country and our municipality according to the legal form that we have chosen.
  • Activity and corporate purpose: We must be clear about what we are going to do and write down the corporate purpose of the company and the activities that can be developed. The activity to be carried out also influences when it comes to paying taxes.
  • Statutes

We must decide if we will be governed by the general statutes that the law implies according to each legal form or if we are going to include different annexes and clauses. Signing a partner agreement stating limitations, responsibilities and way of acting in different situations is usually the most common way to start a business with several partners.

  • Permits, licenses and terms

We must take into account what deadlines we have to start the business activity, if any type of license or permit is necessary to start operating and if we comply with the legality regarding the environment and occupational risks in our country and region. In the event that this is the case, we must turn to the regional bodies to inform us of the requirements that we must meet to achieve this. Example, licenses to open a store, start a work ...

  • Incorporation expenses

When setting up a company, we must consider the expenses of the commercial register, trademark, patent, notary fees…. And if we need it, a legal and tax advisor to help us with these procedures.

See also:

How to choose the legal form of my company in Spain?

Tags:  Argentina banks Commerce 

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