Why Should a Company Formation Be Done Before a Company Startup?

Getting your company registered before embarking on your business journey is akin to laying a solid foundation for a house. It’s not just a legal formalality. Registering your business ensures that it is its own entity, separate from you, the individual owner. This protection extends to your personal assets from any potential business debts or legal issues.

Professionalism and Trustworthiness

Having a registered business exudes professionalism and trustworthiness. Similar to turning up to a job interview dressed and prepared, it makes a positive first impression on customers, investors, and partners. In the early stages of a business, this credibility can be a game-changer, making it easier to attract clients and partners.

Practical Benefits of Registration

Registration serves various practical purposes as well. It enables you to open a business bank account, deal with taxes, and navigate the legal complexities involved in conducting business. Additionally, it is a requirement for securing important contracts and getting necessary licenses. All these factors contribute to smoother operations and compliance with legal standards.

Billing and Invoicing Simplified

Having a registered company also clarifies billing and invoicing processes. Clients and customers can easily recognize that they are dealing with a legitimate business, which fosters trust and ensures a smoother payment process. The confidence this provides can significantly enhance customer satisfaction and retention.

In summary, while the initial steps might seem like extra work, company formation is a proactive step that sets the stage for your startup's success. Consider it as putting on your business armor before entering the entrepreneurial battlefield.

Company Formation in Turkey: A Strategic Move for Growth and Protection

Choosing company formation in Turkey before starting your business has numerous benefits, particularly for those looking to scale and grow.

Flexibility and Tax Benefits

One of the key advantages is flexibility. Not only does incorporation provide several tax benefits, but the profit and loss of the small business can typically be passed through to the taxation part. This is defined by the government and reported on the personal income tax returns of the owners. Additionally, the business can be taxed as a corporation, offering the option of avoiding double taxation of corporate profits. Asset protection is also a significant benefit, as owners can separate and protect their assets in a lawsuit or claims against any business entity.

Growth Protocol and Future Opportunities

For those aspiring to grow, formalizing the company is a wise choice. Outsiders, investors, and partners tend to prefer investing in registered companies over the primitive form of entities. First-time entrepreneurs often struggle with formalizing the equity split between founders, while experienced business owners often know the value of getting things done quickly. Early incorporation can help avoid deadly co-founder disputes, buy equity at a nominal price, minimize adverse tax consequences, and safeguard intellectual property. The new regulations consider an entity a startup up to 10 years from the incorporation and registration date, up from the previous seven years.

Given the time-consuming process of setting up a business in Turkey, starting early is both wise and strategic. Consulting with experienced teams from companies like FO CONSULTANCY can make the entire process a delightful experience.