Setting up a company

How do I set up a company properly?

Registering a company takes an afternoon. Running one so it does not create problems a year later is the part people underestimate.

The short answer

Three things worth knowing.

Decide the structure before you register anything. Sole trader or self-employed is simpler and cheaper; a limited company separates your money from the business but brings filing duties, deadlines and more admin.
Registration is only step one. A business bank account, records of every sale and cost, and a system for setting tax aside from day one will save more than any early logo or website.
Get one conversation with an accountant in your own country before you commit. Rules on tax, payroll and directors' duties differ everywhere and are the expensive thing to get wrong.

What to do

01
Test the demand first
One or two paying customers tell you more than any business plan.
02
Choose the structure
Compare admin, tax and liability where you live, not where the internet advice was written.
03
Register and open a business account
Keep business money entirely separate from personal money from the first payment.
04
Set up records and deadlines
Bookkeeping, invoices, tax set aside monthly, and every filing date in a calendar.

Common mistakes

Questions

Do I need a company to start freelancing?

In most countries, no. Many people start as self-employed and incorporate later when income or clients make it worthwhile.

What can a mentor help with here?

The judgement calls: whether the idea has customers, how to price, what to do first, and what they wish they had done differently.

Can mentorhero register the company for me?

No. We connect you to someone who has done it, so you go into the process knowing what to ask.

A mentor who does the job you are aiming at can tell you which of this applies to you.