Publication date: 29.07.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
Opening a company by proxy is a procedure where one person (the agent) performs all the necessary actions to create a company on behalf of another person (the principal) who intends to become the owner of the company. This can be useful in situations where the principal does not have the ability or desire to do the company registration on his own. Starting a company by proxy may indeed involve hiring legal or business consultants to complete all the necessary steps and formalities involved in setting up a new business or branch. This process allows entrepreneurs and companies to focus on their core business, while specialists deal with all legal and administrative matters.
Advantages of opening a company by proxy
Opening a company by proxy has several advantages, which can be especially useful for entrepreneurs and companies who want to focus on their core business without unnecessary interference with the legal and administrative aspects of setting up a new business. Here are the main advantages of this approach:
- Saving time
Speed of the process: Consultants or lawyers who specialize in opening companies have experience and knowledge that allows them to complete all the necessary formalities faster and more efficiently.
Focus on business: An entrepreneur or company can focus on its core business, leaving administrative and legal matters to professionals.
- Professional help
Knowledge and Experience: Consultants have specialized knowledge of all stages of the company formation process, including document requirements, registration, obtaining permits and licenses.
Avoiding mistakes: Experienced professionals can avoid legal and administrative mistakes, which can reduce risks and prevent possible problems in the future.
- Reduction of legal risks
Compliance with legislation: Consultants ensure that all documents and processes comply with applicable legislation, which helps to avoid legal sanctions and problems.
Solutions for specific needs: Professionals can advise on specific requirements for different types of companies and industries.
- Optimization of processes
Registration and document processing: Specialists know how to quickly and efficiently go through all stages of registration and documentation, which helps to avoid delays.
Obtaining licenses and permits: Consultants can assist in quickly obtaining all necessary licenses and permits, which can be a complex and time-consuming process.
The procedure for opening a company by proxy
The procedure for opening a company by proxy does include several key stages that are important to consider to ensure the correctness and legality of the entire process. Here is a detailed description of each stage:
- Choice of denomination:
It can be a natural person or a legal entity that intends to control and manage the company. It is important to take into account the legal requirements for legal entities and their founders. For example, some jurisdictions may have special requirements or restrictions for company founders.
- Signing the agreement
Conclusion of the agreement: After the selection of the owner, an agreement is concluded between the owner of the company and the nominee. This agreement must clearly define the terms of the assignment and the rights and obligations of the parties.
- Company registration
Preparation of documents: Nomin prepares all the necessary documents for the company's registration, including the articles of association, the minutes of the founding meeting, the application for registration and other documents.
Submission of documents: Nominee submits documents to the state registrar or the relevant body engaged in the registration of legal entities.
- Assignment of management
Issuance of a power of attorney: The owner of the company nominates a power of attorney or other documents that confirm the authority to manage the company.
Management decisions: Nominee performs management functions and makes decisions on behalf of the owner of the company in accordance with the terms of the concluded agreement.
- Payment of nominal value
Remuneration: Nominees receive remuneration for their services. It can be a fixed amount or a percentage of the company's profit.
Terms of payment: The agreement must clearly define the terms of payment for the services of the nominee, including terms and methods of payment.
- The procedure for opening a company by proxy includes choosing the owner, concluding an agreement with the nominal director, registering the company, assigning management powers and paying for the services of the nominal director.
- Each of these stages is important to ensure an effective and legal company formation.
- It is important to carefully approach each stage and ensure that all actions comply with current legislation and the terms of the agreement.
Lawyer help when opening a company
The help of a lawyer when starting a company can be extremely valuable, as legal issues can be complex and require a professional approach. Here is how the services of a lawyer can help at various stages of starting a company:
- Lawyer consultation before registration:
Legal analysis of the situation: The lawyer will help to choose the most suitable legal form for the company (LLC, PE, JSC, etc.), taking into account the business plan, the number of founders, the size of the authorized capital and other factors.
Legal and tax consequences: The lawyer will explain the tax, legal and financial consequences of different types of companies, which will help to avoid unforeseen costs and problems in the future.
- Preparation of documentation
Drafting of the charter and other documents: The lawyer will prepare all the necessary documents for company registration, such as the charter, the minutes of the founding meeting, the decision to establish the company, etc.
Issuance of powers of attorney: If powers of attorney or other documents are required to confirm authority, the lawyer will prepare them in accordance with the law.
- Legal services during company registration
Preparation and submission of documents: The lawyer will prepare and submit all necessary documents to the registration body. This may include filling out applications, submitting legal address documents, confirming the contribution of authorized capital, etc.
Ensuring compliance: The lawyer will ensure that all documents comply with current legislation and do not contain errors that could lead to delays or denials of registration.
- Obtaining licenses and permits
Identification of requirements: A lawyer will help you determine whether your business requires special licenses or permits and ensure that the necessary documents are obtained.
Advice on regulatory requirements: The lawyer will explain the regulatory requirements and ensure their compliance, which can be critical to the legal conduct of business.
- Legal address and bank accounts
Registration of a legal address: A lawyer can help with the registration of a legal address, which is mandatory for company registration.
Opening a bank account: The lawyers online will prepare the necessary documents for opening a bank account in the name of the company and will help collect all the necessary data.
- Compliance control
Verification of documents: The lawyer checks whether all the documents signed or submitted are correct and comply with the current legislation.
Updating information: A lawyer will help keep documentation relevant to changes in information about the company, for example, changes in address, founders or management.
- Assignment of management functions
Consultations on management decisions: The types of legal services provides consultations on the structure of the company's management and helps to correctly issue decisions on management functions.
Regulatory documents: The lawyer will prepare documents that regulate the company's internal management processes, such as corporate governance rules and internal instructions.
- Services of a lawyer for the protection of rights and interests
Drafting of contracts: The lawyer services will help prepare and check contracts with counterparties, tenants, suppliers and other partners to ensure the protection of the company's interests.
Court proceedings: In case of disputed situations or legal issues, the lawyer provides support and represents the interests of the company in courts or before other authorities.
The lawyer advice in opening a company is an important element of the process, as it ensures the correctness and legality of all stages, starting with the choice of legal form and the preparation of documentation for company registration and ensuring compliance with legislation. Quality legal support can significantly reduce risks, avoid mistakes and help focus on business development.
