Incorporating a company as a natural person implies that only the person who creates the business will be the sole owner. And will assume all responsibilities and obligations. However, the business can take some advantages, since the company incorporation process is still much easier and simpler.
There are many various sorts of businesses that may be formed, but it’s crucial to figure out which one is best for you. In most cases, there are more businessmen or entrepreneurs who prefer to create a company together. With the help of other partners. Here, our experts explain how to establish a company as a legal entity.
First, it is important to know the difference between a natural person and a legal person.
On the other hand, setting up a company as a legal entity infers going to one or more partners. It is a more complex alternative, but one that offers more benefits.
It’s critical that you consider each stage to ensure that the establishment of your micro, small, or medium-sized corporation goes well. However, with the assistance of company incorporation specialists that specialize in company formation. You may get better guidance for each stage.
1. Greater trust among your customers
Having multiple partners in a company enhances the confidence since you can present yourself as a solid company. For example, you can provide information, invoices, cards to your potential customers. Which would allow you to improve your reputation among other competitors.
2. Better possibilities to position yourself in the sector
You can create better business strategies to position yourself in your sector. Thus, your business will be able to achieve greater significance and obtain more clients and future investments.
3. Access financial loans and credits
It gives you a greater possibility of accessing financial loans and credits, since not only one remains as a guarantee. But the financial institution has the history of your partners. Remember that banks are not so flexible, for example, to make loans to natural persons.
4. Obtain an alliance with other companies to improve growth
Some companies seek allies to create alliances to improve the growth of both businesses since it allows them to increase their efforts and knowledge to increase sales.
Furthermore, it will be clear during the course of this alliance that the strategic partners are dedicated to spending more in technology, new initiatives, the launch of new services and products, and so on.
The notion of forming a new company appeals to many national and international investors. Since it helps them to expand their market and business. To attain it, though, all of the essential stages must be followed. To accomplish so, several factors must be considered, such as the market, capital, product demand, competition, and so on.
5. Have opportunities to grow in new countries
Having a company incorporation as a legal entity allows you to have better opportunities to grow in new countries, since you have the support of all partners. In addition, each of them provides resources and capabilities to achieve target in a specified time. On the other hand, if you were to create a company as a natural person, it would be a bit more difficult to achieve this goal. Since you will need a whole investment plan.
Because you have the backing of all partners, incorporating your firm as a legal entity gives you better possibilities to expand into other nations. Furthermore, each of them contributes resources and talents in order to meet a deadline. However, if you were to start a firm as a natural person, it would be more difficult to accomplish this aim since you would require a comprehensive investment strategy.
6.If the firm has debts, only its assets are affected.
It is always good to know this point. If at any time, the company cannot pay all the debt, the assets and properties in the name of the partners will not be affected. However, the only factor that will be harmed will be the assets of the company, that is, furniture, and other assets that are governed by the company.
7. Provide a better quality of work to the collaborator
This would be an essential advantage for your workers, since you can offer them, as a legal company, all the benefits of the law, such as minimum salary, AFP, life insurance, gratification, among others. This is a great benefit for companies governed as in this modality, since there will be more people who will want to work in your company, which is a good indicator.