Accountant’s checklist: things to pay attention to for a successful company formation
When a new business sets off, it’s always an exciting process; however, besides enthusiasm, it’s important that the financial and administrative foundations are also in place. Let’s take a look, through the eyes of an experienced accountant, at what is worth paying attention to so that the company stands on stable foundations from the very beginning!
1. Choose the right company form!
Selecting the company form is perhaps the most important decision to make at the start of company formation. The two most common choices are the limited liability company and the limited partnership:
• The limited liability company (kft.) offers protected private assets and flexible operation, but it requires more complex administration and involves mandatory share capital.
• The limited partnership (bt.) has simple formation and flexible operation, though the general partners’ liability is unlimited.
When making this decision, you must take into account the planned turnover, the level of risk, and future plans — and these are only the most important aspects to consider.
2. Calculate the initial costs!
Many people think only of obvious expenses, yet several “hidden” costs may also arise. The most important items include the formation costs, which cover the registration court fee, notary fee, and the legally required notifications. In the case of a limited liability company, the mandatory share capital is currently 3 million forints.
An important cost item is the accountant’s fee, which quickly pays off thanks to the valuable professional support — but it must be accounted for right from the start.
3. Arrange the financial foundations!
Choosing the taxation form is crucial, as it determines the tax burden. At this point, it is definitely advisable to seek professional help, who can also assist in understanding the basics of invoicing — contrary to misconceptions, this is important even if the accountant handles the invoices.
Opening a corporate bank account is mandatory for every company form and useful as well, as it helps separate personal and business finances. It’s worth comparing the offers of different banks, since costs may vary significantly.
4. Make sure documentation is in order!
The articles of association must be carefully drafted, paying special attention to ownership and management relations. If you plan to hire employees, you must prepare for employment administration, including handling employee documents.
Ensuring GDPR compliance is essential for adhering to personal data protection regulations, and in the case of services, it’s also necessary to develop general terms and conditions (GTC). Beyond all this, depending on the business conditions and needs, several specific documents may also be required.
5. Plan ahead!
Creating a business plan is fundamental, but ideally it should not be limited to the start-up period — it should extend to 2–3 years, as this helps with pricing and growth decisions. Cash flow planning is especially important for seasonal activities, since it’s necessary to know when income arrives and when payments are due.
Although few think of it, it’s worth dealing with reserves right from the start, which provide coverage for unexpected situations and future developments.
What to do if you get stuck?
Find a good partner that supports company formation with accounting services as well! A team of professional experts can not only help with administration but also provide valuable advice for business decisions. Get in touch with us — from choosing the company form to financial planning, we stand by your side every step of the way!
