How do you set up a company in this tough market? Is it your question, right? Well, we are here to answer this question. When the business idea is clear, the founding team has been found, a location has been determined, the property rights have been clarified and the initial financing has been secured, you can start a company. But how does it work? 

In this well-researched article, we will show you a list of things needed to start a business that will give you serious money to survive in this cut-throat market. We will be discussing what steps you should follow to start a business, what strategies and legal procedures will be carried out throughout the process of setting up a company.  If you wish to find out more about lawyers visit P&B Law.

The standard way!

There is no one standard way. How a company is founded is as individual as the business idea and founding team. First of all, it is important to be very clear about what you actually want to achieve and how that could be implemented: you need a vision. More about it here.

If you know where you want to go, everyone goes their own way when setting up a business. And neither is worse or better than the other. Well, that’s not entirely true, of course. But at least in principle: There is no checklist that all founders work through point by point so that they end up with a finished company. Many different factors play a role and point in one direction or the other. And some should definitely be thought about because they are ground-breaking.

I’m not 18. Now what should I do now?

Anyone who is not yet 18 years old, i.e. not yet of legal age, has to ask a few additional questions before they can start. First things first: Are the parents or legal guardians informed and agree that you want to found a start-up? If not, work must be done to convince them. Because unfortunately it doesn’t work without their consent. But maybe you have to see the interview as a test run for future investor talks, that also has something positive about it.

The second mandatory requirement before you can find a startup as a minor is acc. Section 112 I BGB that the responsible family court approves the authorization of the legal guardians. The whole purpose of this law is to protect young people from their parents. 

This is to prevent legal guardians from simply transferring risks and liabilities from their own business activities to their underage children by transferring the company to them or opening it on their behalf. In addition, the law is intended to prevent young people from overbearing themselves and, in the worst case, starting their coming of age with enormous debts. This approval can therefore be viewed as a kind of free business plan review. 

Also, worth something. So, if you have a solid plan behind your idea and your guardians have no bad intentions with the empowerment,

And the approval by the family court also has something positive: the legal guardians can no longer simply withdraw their consent afterwards if they have changed their minds. The family court has to be heard again first, § 112 II BGB. Thumbs up!

A second job or main job

The step into self-employment is a significant risk for many founders. Therefore, numerous start-ups try out part-time self-employment. 

Part-time self-employment has the advantage that you initially continue to have a regular income. But apart from that, you should think twice about whether it really makes sense not to invest all of the time and manpower that is available to realize your own idea. It should also be borne in mind that it is not easily possible in every employment relationship to take up a part-time job as an employee.

In any case, you must inform your employer about the secondary activity before starting your own business and, if in doubt, have the secondary activity approved.

 Please note: To compete with the employer with the secondary activity or even to poach customers, is prohibited in any case as a contractual secondary obligation, even if it is not expressly prohibited in the contract. So, you should make sure that the job you do and your part-time job are somewhat different.

Even inventions (patentable and utility model, as well as technical improvements) that you make while you are employed cannot simply be exploited yourself. The rights belong to the employer. As an employee, you are only entitled to appropriate remuneration. In some cases, this speaks against being self-employed as a part-time job.

Permits

Depending on what you want to do for yourself, you need to obtain certain permits or permits. These are can only be determined on a case-by-case basis. There are contact persons in each federal state to find out which permits are specifically required. Because of federalism, the requirements also differ from state to state.

Qualifications

In some professional fields, you can only become self-employed if you have sufficient professional qualifications. In some cases, craftsmen can only become self-employed if they have passed the master craftsman’s examination. 

Many freelancers can only start their own business if they have the appropriate qualifications, e.g. lawyers and architects. Other self-employed persons, e.g. from the security industry, have to pass an examination or instruction at the Chamber of Commerce and Industry (IHK). All of these qualification requirements serve to ensure that entrepreneurs can produce a quality job.

Validation

Last but not least, those who start their own business should remember to protect themselves from the risks that come with self-employment. There is also insurance: You should take out health insurance and pension insurance for personal hazards. And for damage that arises directly from doing business, you should think about taking out commercial liability insurance, business content insurance, and legal expenses insurance.

So, here you have learned how do you set up a company step by step.

Congratulations guys, now you have learned how to set up a company step by step in this cut-throat era. But again, I will tell you, isn’t that easy job you are thinking of. You need proper guidance, thorough market-research of your niche, proper business plan to do well, mentorship of those people who have years of experience in this field. Applying these methods will help you to set up a company easily. Thanks for reading our blog.