Once a new legal entity has been registered, it is important to plan ahead for various commercial and compliance matters.
This article intends to list the main items that should be considered and is not exhaustive.
In some incorporation processes, specific undertakings may have been provided to the Authority for specific actions to be taken post-incorporation.
If there are such undertakings given, care should be taken to meet them in good time to avoid any sanctions being placed against the entity.
Banking
The entity will require to hold a bank account or other financial account whereby it can transact in its own legal name.
Since the arrangement of banking can be a complex process, it is important to start early.
The share capital subscribed for will generally need to be paid up within a specific timeframe into an account of the entity.
In some circumstances, capital may be paid up in kind rather than cash, and if this it is important to enter into the arrangement to settle the subscribed capital accordingly.
The business may require employees, and residency and work permits may be required to formalize those positions.
Employment contracts will need to comply with the local laws and if any special terms are envisaged, those will need to be carefully drafted into the entity's standard employment terms.
In some circumstances, local rules may require that any job openings are first offered to local nationals and this may impact on the business human resource planning.
Adequate commercial or industrial space is important for the operations of any business and in some legal structures, there may be statutory minimum types and size of premises required to operate compliantly.
Physical space is also an important part of demonstrating substance if this is relevant for your business.
The maintenance of adequate accounting records is a statutory requirement and should include, as a minimum:
In addition, the entity may be required to appoint an external auditor for independent verification of the records annually.
Registration of the new entity with the taxation authorities will need to be completed in accordance with the deadlines set for each category of taxation.
This can often be a large topic in itself, and some of the key considerations to plan for include:
Since compliance is an ever-evolving topic, it is important to stay up to date with the legal changes and how these may impact or impose on your business.
Whilst this Article is not exhaustive, it intends to provide a framework for review of the entity and identity specific actions required.