Business Creation, the Obligations Relating To the Registered Office

 

At any given time, every business creator is required to determine the location of his head office. Indeed, without this, no registration is possible. There are many places to set up your headquarters, so the problem is not so much finding a suitable place as making the best decision about your business. Many entrepreneurs are reluctant, so I will detail the 4 possible locations to set your headquarters, presenting the advantages and disadvantages of each solution.

What is a head office?

When the stage of the drafting of the statutes comes, domiciliation of his company is obligatory. To do this, you must enter an “official” address that is more commonly known as the head office . It is, in a way, an administrative address that will appear on all your correspondence, your bills, your letters, etc. The head office of a company is also the place where all important and strategic decisions will be made.

In addition to these aspects, setting a head office is not a decision to be taken lightly; its place of establishment will determine, among other things, the nationality of the company as well as the court competent for the handling of disputes (at least for certain legal disputes). In addition, the choice of location has important tax consequences, particularly with regard to the CFE (business property assessment) due at the end of the year by companies. Indeed, being a local tax, its amount can vary significantly from one municipality to another .

Be aware, however, that if the company has only one head office, nothing prevents it from holding several institutions. In this sense, the place of management can quite well be isolated from the places where the activity of the company takes place. Of course, the opposite is equally conceivable; in this case, the store, office or business premises, depending on the nature of the activity, is also the head office of the company .

Define the seat of your business at home

Define the seat of your business at home

This is self-evident, but to set the headquarters of a company at home must necessarily be the leader: President of a SAS or SASU, manager of a SARL, a SNC, etc. This naturally excludes the non-managing partner of SARL, for example.

 

Above all, it should check with your landlord or your condominium association, that no regulatory or contractual provision prohibiting the establishment of the headquarters in your domicil e. In addition, you must inform them by registered letter with acknowledgment of receipt, well before the registration of your company.

This solution is undoubtedly one of the most economical and allows entrepreneurs to have an administrative and tax address at lower cost. Whether they are engaged in commercial, liberal or artisanal activity, the majority of microentrepreneurs – formerly autoentrepreneurs – and individual entrepreneurs opt for this solution. As for those who do not exercise their activity in a specific place such as hairdressers, groomers, beauticians at home, the head office is, in most cases, fixed at home.

Fix its headquarters in a commercial premises

Fix its headquarters in a commercial premises

This solution, although expensive compared to the previous solution, has some advantages. On the one hand, setting up your headquarters at the very place where your activity is carried out makes it easier for you to organize, since everything is centralized in one place. On the other hand, the choice of the location of the commercial space can play a determining role for your business and make you aware of your prospects without necessarily using advertising. In addition, depending on the nature of your activity, you will be able to find the place that you need, the one adapted to your real needs and your activity.

On the other hand, any medal has its reverse; this solution involves significant costs, particularly with regard to leases through a commercial lease which, at the time of launching, can have unfortunate consequences in case of insufficient turnover.

Domiciling your business in a business center

Domiciling your business in a business center

This consists of fixing your head office with a business center owned by a domiciliation company . Commercial domiciliation gives entrepreneurs many advantages, including that of being able to benefit from a prestigious address .

Indeed, by choosing the place of your domiciliation, you can, for example, opt for the famous neighborhoods of big cities. Such an approach certainly reinforces your credibility with your potential customers as well as their trust. In addition to separating your personal home from your business – useful in case of litigation – this solution proves to be less expensive than renting a commercial space.

 

The nursery: an interesting solution

The nursery: an interesting solution

The nursery allows many entrepreneurs to settle down for rent. The latter is well below the prices practiced on the rental property market, hence its interest.

In addition to the pecuniary aspect, the nursery provides project creators with its infrastructure – meeting rooms, computer equipment, dining room, etc. – while providing them with expert advice, either through private meetings or personalized training. It goes without saying that the interest of such a structure is also to establish contacts, and thus to promote networking.

To conclude, this list is not exhaustive, other solutions exist, in particular that allowing to domicile his company within the premises of another company. Little known to entrepreneurs, the sharing of premises is more common than we think. Also think of the coworking spaces that are also places authorized to install the headquarters of his company. In just a few years, coworking structures have multiplied, no doubt you will find one of them in your city or department.

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Diversification When Investing In Start-Ups – The Start-Up Investor

I invest my money in start-ups through crowdinvesting. That this is associated with a certain risk, should be well known. I can live with that. At the same time, in addition to the risks of the individual investments, there is still the concentration risk. Concentration risk means that the individual exposures are all highly correlated.

This correlation can be fed by many different characteristics: asset class, currency, investment instrument, counterparty, contract type, etc. To avoid or at least minimize this concentration risk, I have personally set up a limit system for myself. This consideration goes back to the portfolio theory of Markovitz . Accordingly, the risk of a portfolio can be minimized while maintaining the expected return through diversification.

For that I have set myself the following limits: Overall, I do not want to invest more than 10% of my portfolio in start-ups; At the same time, I do not want to invest in any platform with more than 2% of my portfolio. At the first limit, I am slightly over it and the second limit I have (clearly) exceeded in a platform. But in both cases I only invest now, if all criteria fit.

In addition, I still have country and currency limits at the portfolio level, but these are relatively irrelevant for the start-ups, as most of the companies I have invested in and invest in come from Germany and the investment is therefore settled in EUR. I have set no limits for these two characteristics.

I also have industry limits at the portfolio level. However, honestly, I do not look at the industries in start-ups as a) the investments per start-up are comparatively low (~ 0.1% of the portfolio value) and b) the development of the start-up is less dependent on industry development than with companies that already have a high market share.

In summary, my limit system for startups looks like this:

In summary, my limit system for startups looks like this:

  • Asset class <10%
  • Platform <2%
  • Individual investment <0.1%
  • Countries, currency, industry only at portfolio level

So far, I have done well and I also think that I will stay with what may in some eyes low limits in the future, because I just do not have enough data available, such as investments in start-ups on the crowd long term, especially over an entire business cycle , develop in order to take more risk.

 

5 Tips On How To Arrange Debts In 2016

 

 The year 2016 has barely begun and a lot of people are already over indebted. Let’s agree that with the crisis that shakes the country – high interest rates, rising unemployment rates, inflation – it’s much harder to get out of debt.

However, you can not live on the edge forever. With organization it is possible to get out of the red and gain control over your financial life. Those people who have a habit of planning for their spending, with discipline, can achieve savings of up to 30% in their budget.

To show how to organize debts in 2016, we separate six tips that may help you compose your planning and your posture to get back on top of debt. Check out:

Analyze and plan your spending: see your budget

Analyze and plan your spending: see your budget

First of all, it is important to think and plan. It’s no use simply to post revenue and expenses on a spreadsheet, you have to look at the values ​​and analyze them as a whole. In this situation you can identify if all your fixed expenses are needed or even if you are paying for services that you do not use, such as the monthly tuition you get once a month or the landline phone that you do not even use but pay a monthly fee .

You can reduce some values ​​by simply committing

You can reduce some values ​​by simply committing

This tip concerns all the little things one can do to reduce consumption. For example, do not take long baths, do not forget the light of the bedroom and not sleep with the TV on. There are several other services that you can evaluate that, if best used, can make a significant difference in your budget.

Do not create more debts: avoid plots to lose sight of

Do not create more debts: avoid plots to lose sight of

Falling into the temptation to buy that 52-inch plasma television can be difficult if paid in 60 months. And change the car, then? Only 120 parcels. Often all the purchased plots, if added, end up taking a good part of your budget. Allow yourself, when you have enough money, to enter into some agreement to pay for the remaining installments and to have financial advantage of it.

Do not enter the revolving credit to pay the expenses

Treat the credit card and the overdraft as debts, which is what they really are. It’s no use paying the minimum credit card or paying the bills with the overdraft limit, because next month those amounts will be charged with interest – and high interest. This type of credit should only be used in an emergency and so you run the risk of getting more involved and not organizing debts.

Exchange expensive debts for cheaper

If you are having expensive debts such as the overdraft and special credit card, it pays to take out a loan at cheaper rates and take away the costly debts. The payday loan is usually the one with the lowest interest rates, followed by personal credit.

Sir Fretful Plagiarism compared services of companies that lend money over the internet, see.

Learn to Save: Deal With Serious Debt

Learn to Save: Deal With Serious Debt

After balancing the budget, you will have another challenge to face. Money may begin to emerge, and when that happens, keep in mind the importance of keeping. With this, you can save as if you had a debt, saving a fixed amount per month, for example. The important thing is that you can build a reservation and redirect it to when you really need it. And, speaking of savings, another way to save is to separate a part of your 13th for expenses or even to save.

After we’ve come up with some tips on how to organize your budget, you can start your financial planning and use strategies to achieve your spending balance in 2016! Always remember to review your expenses by making revisions in your budget.

 

 

Start-ups: Growth Phase: Financing Business Growth

 

 In the growth or growth phase, although the sales increase, but at least at the beginning of the phase the company is usually not yet in the profit zone.

In this phase, the company structure is continuously being continued. The internal business organization may need to be reorganized. The expansion of sales and production comes first. It may be necessary to diversify the product portfolio in order to acquire additional customers. In addition to equity capital, promotional loans, if necessary combined with non-payment guarantees, can also gain in importance.

venture capital

In addition to private investors and medium-sized investment companies, publicly funded venture capital funds also invest in young companies. In addition, they offer helpful know-how and access to a wide network.

Co-investment fund coparion

Co-investment fund coparion

The co-investment fund coparion invests in small innovative tech companies that are not older than ten years. They should have above-average growth potential and already have their first sales, key customers or a successful product launch. Up to ten million euros can be invested per company. Prerequisite for the coparion commitment is that private investors with at least the same volume and on the same economic terms (“pari passu”) participate in the financing round. Coparion was initiated by the ERP Special Fund and KfW Bankengruppe.

loan

Typical of public development loans include favorable interest rates and long maturities. There are loans that are aimed specifically at innovative growth companies. However, “classic” development loans may also be considered.

ERP Innovation Program

With the ERP Innovation Program, the costs of research and development can be financed over a period of ten years over the long term in order to help products or processes to become market-ready and develop.

The funding is granted as an integrated financing package consisting of a classic loan (debt capital tranche) and a subordinated loan (subordinated tranche). It finances up to 100 percent of the eligible costs, a maximum of 5 million euros per project.

Motivate investors

The Federal Ministry of Economics, the ERP Special Fund and the European Investment Fund (EIF) support venture capital or venture capital funds, which use their capital in so-called gazelles – fast-growing young companies to provide young companies with sufficient capital in the growth phase – participate. In addition, the BMWi also creates financial incentives for business angels who invest in young companies.

Mezzanine Fund of Funds for Germany (MDD)

The Mezzanine Fund of Funds for Germany (MDD) invests in private professional funds that provide mezzanine finance, an intermediate form of equity and debt capital. These include subordinated loans, silent, typical and atypical investments. In the event of insolvency, they are only subordinated (after the other loans) and thus strengthen the economic capital base of a company. The MDD also participates in so-called venture debt financing. These are loans where the entire loan amount is due only at the end of the term. Customary collateral is not required.

ERP / EIF Growth Facility

ERP Funds and EIF partner with private venture capital funds and set up co-investment funds to participate in innovative growth companies. The amount of the participation is based on the amount of the investment by the venture capital fund (“pari passu”). His investment should be between 20 and 60 million euros.

INVEST – grant for venture capital

Business angels and other private investors can use the “INVEST” to increase their stake. If a business angel participates for at least € 10,000 in a start-up for at least three years, he receives a subsidy of 20 percent of his investment. In addition, from 2017, the tax, which is attributable to a later capital gain, can be compensated by a lump-sum grant.