Growth
How to Register a Company: Step-by-Step Instructions for Startups
Written by
Lineke Kruisinga
Published on
April 16, 2025
Written by
Published on
Thinking about making your business official? Registering your company is the first step to turning your idea into something real. It gives your startup a legal identity, protects you from personal liability, and shows partners or investors you mean business. In this article, we’ll walk you through how to register a company, from picking the right structure to sorting out the paperwork and knowing what comes next. Whether you’re just starting out or ready to take the leap, this is everything you need to know about business registration.
First, it protects you personally. If something goes wrong, your personal savings or belongings won’t be at risk, only the business is responsible. Second, people take you more seriously. Clients, partners, and investors trust a business that’s officially registered. It also opens doors to funding. Most banks and investors only work with legal entities. And finally, it helps with taxes and compliance. You can claim certain benefits, apply for a VAT number, and stay on the right side of the law.
Below, we explain some of the key reasons why many founders choose this structure.
1. Limited Liability
One of the biggest advantages is that your personal assets are protected. If the company runs into financial trouble, you’re not personally responsible for its debts – as long as you haven’t signed any personal guarantees. Your risk is limited to what you invested in the business.
2. A More Professional Look
Being a registered limited company can make your business look more credible. It shows clients, suppliers, and investors that you’re serious and responsible with your finances.
3. Tax Benefits
Limited companies often pay less tax than sole traders. Instead of income tax, you pay corporation tax on profits, which can be lower. Plus, there are more flexible ways to pay yourself as a director, which might be more tax-efficient.
4. Long-Term Stability
A limited company is its own legal entity, which means it can keep running even if the owners leave or pass away. This makes planning for the future a lot easier.
5. Easier to Raise Money
Need funding to grow? Limited companies can issue shares to investors in exchange for capital. You may also be eligible for certain grants or funding programs that only apply to registered companies.
6. Protect Your Business Name
Once your company name is registered, no one else can use it. This can help protect your brand and avoid confusion with other businesses.
Before you register your company, you’ll need to decide on a legal structure. This choice affects how you pay taxes, how much personal risk you take on, and how easy it is to raise money. Here are the most common options:
1. Sole Proprietorship
This is the simplest structure — just you, running your business. It’s easy to set up and has low costs. But there’s a catch: you’re personally responsible for any business debts or legal issues. That means your personal assets are at risk.
Pros:
- Easy and cheap to set up
- You’re in full control
Cons:
- No legal separation between you and your business
- Harder to get funding
2. Partnership
This is like a sole proprietorship, but with two or more people. You share profits, losses, and responsibilities. It’s also fairly easy to set up, but all partners are usually personally liable.
Pros:
- Simple structure for starting a business with others
- Shared responsibilities
Cons:
- You’re liable for your partner’s actions
- Disagreements can cause problems
3. Limited Liability Company (LLC)
An LLC gives you the flexibility of a sole proprietorship or partnership, but with limited liability — your personal assets are protected. It’s one of the most popular options for startups because it’s relatively easy to manage and more attractive to investors than a sole proprietorship.
Pros:
- Limited personal liability
- Flexible management and tax options
- Great for small-to-medium startups
Cons:
- Some paperwork and yearly filings required
- Not ideal for startups looking to raise large venture capital
4. Corporation (e.g. BV, GmbH, Ltd)
This structure creates a completely separate legal entity from its founders. It offers strong liability protection and is often the go-to for startups looking to scale and raise outside investment. However, it comes with more rules, costs, and formalities.
Pros:
- Best for raising capital from investors
- Strong legal protection and credibility
- Company can live on if founders leave
Cons:
- More complex and costly to set up
- Requires formalities like board meetings and annual reports
If you’re just testing an idea or working solo, a sole proprietorship might be enough for now. But if you plan to grow, bring on co-founders, or raise funding, it’s often smarter to start with an LLC or go straight for a corporation. These structures offer more protection and make your startup look more serious to investors.
Think about your goals:
Ready to make it official? Here’s how to register a company in a few clear steps:
Step 1: Choose a Business Name
Pick a name that fits your business and isn’t already taken. You’ll need to check if it’s available and not too similar to existing company names or trademarks. A quick search on your local business registry or trademark database will help.
Step 2: Decide on a Business Address
Your company needs an official address. This can be a physical office, your home, or a virtual office — depending on your setup and what’s allowed in your country.
Step 3: Prepare Your Documents
You’ll usually need a few key documents: identification for the founders, your company’s Articles of Association (the rules for running your business), and sometimes a shareholder agreement. Some countries ask for a business plan too.
Step 4: Register Your Company
Next, you’ll need to officially register your business with your local Chamber of Commerce or national registry. This step makes your company a legal entity.
Step 5: Apply for a Tax Number or VAT ID
Once your company is registered, you’ll need to apply for a tax number. If you’ll be charging VAT, you’ll also need a VAT ID. These are usually issued by your local tax office.
Before you register a company, it’s good to know how much it is and how long it will take.
Registration Fees
The cost to register your company depends on where you’re based. In most countries, this fee is fairly low — usually between €50 and €150. If you use an online service or hire someone to help, that might add extra costs.
Ongoing Costs
Running a company also comes with some yearly expenses. Think of things like accounting fees, annual reports, and government filing fees. If you hire an accountant, expect to pay a few hundred euros a year, depending on how complex your finances are.
Timelines
The time it takes to register a company varies. In some countries, it’s done in a day — especially if you register a company online. In others, it might take a few days to a couple of weeks, especially if documents need to be reviewed manually.
The process to register a business can look a bit different depending on where you’re starting your business. Each country has its own rules, so it’s important to know what applies to you.
Local Registration Process
In the Netherlands, you register your business through the Kamer van Koophandel (Chamber of Commerce), often in person. In the UK, you can register a company online through Companies House, which is fast and affordable. In Germany, the process is a bit more formal — you’ll need a notary to help register your company and submit the documents.
Online vs In-Person
Some countries, like the UK and Estonia, make it super easy to register online. Others might require an in-person visit or additional steps. Always check what your local rules are before you begin.
Special Exceptions
Some countries offer extra support for foreign founders or early-stage startups. For example, places like the Netherlands and Estonia offer start-up visa programs for non-EU founders with a solid business plan. These programs can help you live and work while building your company.
Where Should You Register?
While it often makes sense to register in your ‘home country,’ that’s not always the smartest option — especially if you're planning to raise international funding or expand quickly. For example, registering in the US (Delaware is popular) can make you more attractive to American investors. Estonia’s e-Residency program lets you set up an EU-based business entirely online, which can be useful if you want to operate across borders.
Pros of Registering Abroad:
Cons:
Always weigh the long-term vision of your startup against the legal and practical implications of where you register. A lawyer or advisor with experience in international startups can help you make the smartest call.
So, you’ve registered your company — great start! But there are a few more things to take care of before you’re fully up and running. Here’s what to do next:
Open a Business Bank Account
Keep your business and personal finances separate. A business bank account makes it easier to track your income and expenses — and looks more professional.
Register for Taxes and Payroll
Depending on your country, you may need to register for VAT, income tax, or payroll taxes if you’re hiring employees. Check with your local tax office to make sure everything’s in order.
Sort Out Your Finances
Use accounting software or hire an accountant to stay on top of invoices, taxes, and reports. It’ll save you a headache later on.
Get Business Insurance
Insurance protects you from unexpected costs or legal trouble. Think about what coverage you might need — like liability, legal, or equipment insurance.
Build Your Online Presence
Set up a website, create your social media accounts, and get a business email address. It’s the easiest way for people to find you and learn what you do.
Registering your company might feel like a big step, but it’s one that sets your business up for success. It gives you legal protection, helps build trust, and opens doors to funding and growth. From choosing the right structure to filling out the paperwork, the process is easier than you might think, especially when you take it step by step.
Take your time, plan things out, and don’t be afraid to ask for help if you need it. Once you’re officially registered, you can focus on what really matters: building your business.
Also good to read:
The Startup Pivot: Knowing When and How to Change Course for Success
How to Launch on Product Hunt and Attract Early Adopters to Your Startup
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