GUIDE FOR A NEW ENTREPRENEUR

Every entrepreneur is born with an idea or a dream. However, if you do not have all the necessary legal and financial information at the time of undertaking, that idea that was born as a dream, can later become your worst nightmare. However, that reason could not limit you to what can be a great personal and professional experience.

Especially if you have a good project …

All you need is good comprehensive advice so you can avoid contingencies and ensure the success of your venture.

That is why in this article we leave you some tips that you should consider when starting a new business.

1.Develop an idea.

Do not start a business just because something is in fashion or because you think that marketing it will give you money. Develop a business concept that you are passionate about related to something in which you have some experience. Then, think of a product or service that you think will improve people’s lives.

2. Develop a business plan.

A solid business plan will guide you forward. You will also need it to present your idea to potential partners or investors. It must include a mission, an executive summary, a company summary, samples of the service or product, a description of your target market, financial projections and the cost of operations.

3. Identify your market.

Even if you have detected some interest in your business, you need to evaluate the market so that you sell it to the people who will make the purchase. Make a competitive evaluation.

4. Determine the costs.

Do additional research and know the standard costs within the sector or industry. Not only will this help you run the business more efficiently, it will also be valuable information for investors.

5. Set a budget.

Once you determine how much money you will have to work, discover how much you need to develop your product or service and create a marketing plan.

6. Determine the legal structure.

Determine what suits you best: be the sole owner, have a partner, establish a limited liability company, a corporation, a non-profit organization or a cooperative.

It is important that you know the difference between setting up a sole proprietorship and other types or corporate legal figures. Because although establishing a sole proprietorship is much easier and cheaper in the long run, it is a legal figure that is not highly recommended in terms of protecting your own assets or assets and that of the company, among other disadvantages.

7. Select the name of your company.

Decide on a name that goes with your brand, then see if it is available and if you can use it freely, for this purpose you will have to perform a homonymy control that you can do through the Virtual Office of Fundempresa.

8. Register your company.

Once you chose the name, you verified that it is available and made the reservation of it, in case you have chosen to establish a Limited Liability Company, Anonymous or other, you must have the following documentation:

8.1 Registration in Fundempresa.-

  • Company Foundation Act where the partners agree to establish a venture under the modality of a legal entity, be it a SRL., S.A., etc.
  • Company Constitution where the Company Object is established, the participation in percentage of each partners, the rights and obligations of the partners, the legal reserve, duration and the modality of the dissolution of society, among the most relevant aspects.
  • Initial Balance with which the Company was opened
  • Power Instructions for the Legal Representative where it establishes all the powers and powers of the Legal Representative of the Company.

Once you have all this documentation you can protocolize it in a Notary of Public Faith. Subsequently enter the procedure to Fundempresa, where prior review and corresponding analysis, you will obtain the Registry or Registration of Commerce of your Company, Registration of the Testimony of Constitution and Registration of the Testimony Power of the Legal Representative.

8.2.- Registration in the National Tax Service

Once you have the Registry in Fundempresa, you must go to the offices of the National Tax Service in order to obtain the NIT Tax Identification Number

8.3.- Registration in the Ministry of Labor

Once you have the NIT Tax Identification Number issued by the National Tax Service, you have 30 days to register the Company to the Mandatory Registry of ROE Companies under the Ministry of Employment, Labor and Social Welfare, in case you do not have Dependents register only with the Company and in case of having dependents you must register each one and send a salary form monthly.

8.4.- National Cash Register – Short Term Social Security

As a next step you must register the Company and your dependents to the Short Term Social Security which can be the National Caja, Caja Cordes or depending on the item you are in, you can opt for the Caja Petrolera, Caja Bancaria among others.

8.5.- Registration to Future AFP or Forecast – Long Term Social Security

As a last step you must register the Company for Long-Term Social Security, which will be your contributions for your retirement in your old age, you can opt for the Future AFP or Forecast.

9. Keep correct accounting.

Have all the money that enters and leaves the business registered.

Many entrepreneurs see accounting only as a legal obligation, however accounting is also a great ally for business management. Accounting is essential to keep the tax status of a company in good condition and avoid penalties that harm the financial health of your business.

Also through accounting you can track the transactions made within the organization and keep a record of all your economic operations

Some of the positive effects of keeping good accounting are:

  • avoid excessive tax payments that do not apply,
  • have a global knowledge of the company,
  • make better decisions for the future of your business,
  • improve the efficiency in the administration of your resources

10. Be sure to Register your Brand.

Your brand is one of the most important assets of your company. That is why it is important that you register it before the SENAPI National Intellectual Property Service. Take into account that your trademark gives you the exclusive right and is enforceable before third parties and for any infringement you can assert your rights before the corresponding courts

Do you need help? Do you have a great idea that can become a StartUp?
We can advise you => LAS / Legal Accounting Services


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