To register or not to register?
Today a lot of businesses could be operating both with a license and without a license. Without the license, you wouldn’t need to register any companies or anything of that sort. All you would do is to operate as an individual. If asked by the government you would still need to provide all the taxes; however, it would be much more difficult for them to monitor you or ever charge you with anything unless you operate an actual company and thereby let them known yourself about your existence.
If you work alone, without any assistants, then this option could be ok, as long as you ain’t work with any corporate clients who would otherwise require you to have at least a company identity. If you have any workers or helpers, it might be more convenient for both of you to have a registered company.
Likewise the decision to register or not to register could be partly determined by the actual income. If you earn some pennies, even if you have helpers it wouldn’t make any sense registering it. If your company provides good income and could provide more working places then it would make a good sense to have it officially registered.
Should you want to register your business, you would need to gather all the requirements and submit it to the right department. In most of the countries you could also make a submission online, and then visit the offices in person once your visit has been scheduled. This procedure can save a lot of time. Click here for more information.
Note; a different size of company would require different requirements. The simplest business registration would be a limited liability company or LTD. This has the least requirements and could be registered by anyone of legal age without any problems. When you have registered a company, be ready to start your activities right away, otherwise you will just spend some amount of money in vain. Additional expenses when running a company would be deducted as accounting statements and different taxes depending on your business sphere.
About the taxes, do not assume that you only pay taxes from a profit. Yes you will only pay income taxes from a profit if your company is not at loss; however, there are dozens of other taxes you will be facing once starting to operate a particular company.