The most suitable business form a company can have depends based on the capital the businessmen can invest in the respective company (different legal forms require a different minimum share capital), the size of the company and its main business operations. It also depends on the specific jurisdiction (or country) where the business will be formed.
In Europe, commercial legislation generally provides the same types of legal structures in most of the European countries. Regardless of the European country in which they are incorporated, most of the legal forms provide the same characteristics, but relevant differences can appear in terms of the company’s capital.
However, when starting a business in Europe, it is important to know that the most popular legal entity is represented by the limited liability company. In Ireland, for example, the most popular business form is the private company limited by shares, due to its favorable conditions available for its investors. Ireland has recently revised its Companies Act, and investors can now register a wide range of private companies.
Some of the business forms that can be found in Ireland may also be set up in Estonia, a European country where businessmen can incorporate limited or general partnerships, limited/public limited liability companies or branches and subsidiaries of foreign companies.
Choosing the suitable business form in this case must be decided depending on the liability the investors want to assume, the minimum number of investors that must associate in the company and the required capital, but, just like in the case of Ireland, the private limited liability company is also the first choice of local and foreign businessmen.
Singapore is another business destination in which the private limited liability is the favorite business structure, due to the fact that it represents a separate legal entity than its founders, who enjoy limited liability on the debts of the company. In this country, the structure generally benefits from various tax exemptions and incentives. Those interested in setting up a company in Singapore, can receive assistance from a team of local incorporation agents.
Although these business structures can provide a wide range of advantages when starting a commercial activity, in the case of businessmen who want to enter the financial markets, other business structures will need to be chosen.
This is the case of those interested in starting an investment fund in a specific jurisdiction, who can choose from specially designed legal entities. For example, Belize is a well-known investment destination, and investors usually prefer to form offshore companies in Belize, one of the most popular forms being the international business company, a business structure that offers numerous tax exemptions and advantages.
- Pros and Cons of Financing a Business
- What is a Limited Liability Company (LLC)?
- How to Form LLC or LLP for a Start-Up Home Business
- When to Change Your Legal Structure
- Choosing the Legal Structure of Your Business