A Startup wants to grow as fast as possible. In order to achieve such growth, the internationalization of their business is a crucial step. Any well known startup company has become a multinational. It’s in the nature of the scalability of typical startup concepts, that allows to grow companies to new markets.
In order to enter a new market, a startup needs to rely on a local company formation agents, which provides company formation services.
Company Formation agents are not your typical lawyer or accountant. In general, they are considered to provide more practical services, and typically do not apply hourly billing schemes. Instead, they should provide you company formation services, which allow you to start a new company, at a fixed rate, during a fixed timeline and process.
Company Formation services also relate to any corporate affair, above and beyond the formation of your company. Such as legal consulting in Netherlands, bookkeeping services, the opening of a bank account, or the application of the correct TAX Id’s. In some cases, the company formation agent even can facilitate in renting an office, or obtaining a registered office address for your company.
Providing a local director, or a trustee service, is not considered a company formation services. Instead, such a service is regulated in The Netherlands and only provided by licensed trust offices.
A company formation agent deals with a local notary (like in The Netherlands) to prepare the formation of your company, and to supervise the registration at the Chamber of Commerce. In general, company formation agents have much better relations with notaries, and notaries are quit reluctant to work directly with overseas entrepreneurs.
Using a company formation services, will allow you to set up the company quicker, but also cheaper. Due to the fact that agents provide multiple services to a client, and incorporate numerous companies per month, they are able to negotiate lower fees with the notaries and work more efficiently, with lower margins.
Because the broad range of company formation services, it’s not likely that your (local) tax advisor or lawyer, will be able to assist you with all this practical matters.
Aside from that, the use of a company formation agent is typically less expensive, due to the fact that in the startup phase of a company, the contents of the Articles of Association or shareholders/employee agreements are less relevant. It typically gets less attention, until the startup really starts to make a profits, and the stakes are getting high enough to spend money on the legal affairs of the company.
In conclusion, every startup should consider the use of company formation services, in any country in the world. With only 1 contact in a country, a startup will be able to enter a new market, within a limited budget, and without having to consult different type of advisors. INCO Business Group in The Netherlands provides company formation services since 2007, and has started more than 1,000 companies for entrepreneurs from all over the world.