What is the duration of company formation?

Business building is increasingly an interesting prospect for many workers ready to become entrepreneurs in rapidly growing markets. This boom has been going on since 2008 and the number of business creation has not decreased despite the health crisis. However, getting started means moving forward with many challenges, and this is a very crucial stage during the management of a company’s training period from the very beginning. What is the duration of company formation?

When is the training period?

There is no precise regulation to declare that a company is in formation. The method of setting the limit of this period varies from company to company.

Generally speaking, a company is said to be “in formation” between the moment its decision makers launch it and the moment it becomes legally recognized. It is often assumed that the date of completion of training is concrete when the company obtains its registration, proof that it has integrated the registers and that it has a well-known legal personality, the civic identity of groups of people. letter is. In fact, it is not enough for a company to actually file articles of association to have uniformity. To achieve this, the business model must be defined and a number of parameters must be verified, including the feasibility of the project or the fact that the product/service can actually exist.

As far as the date of commencement of the training period is concerned, the matter is more ambiguous. Any declaration of intent by an entrepreneur with a view to setting up a business may constitute the beginning of a training period. Legally, however, it is preferable to submit to a recognized act, such as opening a bank account dedicated to a booming activity.

Contractor’s responsibilities during the period

If the training period does not have a strict definition, this does not prevent the new company from determining the field of action. During this period, the company is able to exercise its activity, whether by signing business contracts, to give the activity a legal framework or to form its own team by developing a process of recruitment that motivates the place of employment. . contracts.

These businesses concluded with a sign on paper have legal value, even in the period of formation because it is not because you do not have structures that you are not responsible for them. Unless registration has been issued, it is the signatories who assume legal responsibility and therefore you. The procedures shall be directly linked to the actual existence of the Company and only when the Company has agreed to take them into account as past acts, that is, from the moment it leaves the so-called “training” period.

end-of-term management

Unless your company has been registered, it seems necessary to consider your company “in formation” as perpetual. This brings a lot of rigidity to all the steps taken by the entrepreneur during this period. This makes sense when the company gets registered. There must be a transference between what was done during the training period, and what will from now on finally be established in the proper name of the recognized society. It is therefore imperative to thoroughly record any operation during the training period in order to be able to adjust the course at the end of the period. Fortunately, the latter typically doesn’t last more than a few months.

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