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Does vps provider needs to be registered legally?
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Does vps provider needs to be registered legally?

Hello,
Just wondering does vps or hosting providers company must register legally in your country.

Is that compolsury?

Is there anyone doing without registering?

Thanks

Comments

  • jarjar Patron Provider, Top Host, Veteran

    To legally do business in most places one needs some type of registration for tax purposes. In the US, this can be as simple as a sole proprietorship where one is simply registered to act as their chosen identity. For example, John Smith 'doing business as' (DBA) RandomVPS. On the upper end of difficulty and cost, the company can of course be it's own legal entity which is controlled by it's appointed officers, this being a corporation.

  • I believe you should get your business registered when it's big, as you can benefit from tax and other aspects.

  • aglodekaglodek Member
    edited November 2013

    Hard to say without knowing what country you live in. Quick and dirty: in most jurisdictions, you have two options to run a business: (a) a sole proprietorship (means you are the company and no separate legal entity is created); and (b) some kind of limited liability company (means a new legal "person" is created, in which you are a shareholder).

    Option (a) involves going to a local government office and registering yourself as a business. Option (b) is more complicated and expensive to set up and the procedures vary from jurisdiction to jurisdiction, generally much more straightforward in Common Law countries (UK, US, Australia, etc.). However, option (b) insulates you from risk should your business run into trouble. Depending on jurisdiction and type of legal entity you form (in US there are many different kinds of legal entities, for example), there are also considerable tax advantages (read: in the end you wind up with more money in your pocket, after satisfying your government's insatiable hunger for money! ;) In option (a) you are PERSONALLY responsible for all debts of your "company".

    Last but not least: option (b) offers you the possibility of setting up your business in a different jurisdiction from where you live, which offers too many advantages to go into here. This is especially true for any kind of hosting or internet business. For example: many Chinese nationals set up business (a limited company) in Hong Kong, saving themselves the trouble of going through much more red tape in China, but they run their business from China.

    EDIT: few people realize they can easily run a business that is registered in another country, having their limited company abroad, but with a bank account in their home town (Disclaimer: in some jurisdictions, you can't open a bank account for a foreign company without registering locally some kind of a representative office).

  • Some don't register. We do. Some just sell at a personal level.

  • I believe you should get your business registered when it's big

    I believe you should get your business registered before you open your doors to the public. :)

  • Running any business without registering opens you personally to lawsuits so it's smart to register. You do not have to register everywhere you do business, but in certain tax situations you are required to handle your taxes correctly. In many cases not having a physical presence does not require you to collect taxes in a location, but this is not a sure fire setup especially in the United States for Taxes.

    In the US you dont even have to register in the state you live in. Many register in Nevada because of no business taxes, others in Delaware because of the chancery court which has hundreds of years of case law to rely on to simplify lawsuits and other legal matters.

  • You don't have to, but forming some type of a limited liability company is cheap in most countries will remove your own personal financial risks. It also looks professional.

    As @aglodek also points out, the company needn't even be in your country.

  • Ok so personally doing a vps buisness does it needs a registration?

  • bigcatbigcat Member
    edited November 2013

    @mazker said:
    Ok so personally doing a vps buisness does it needs a registration?

    As other have stated, in most places its not compulsory, but highly recommended.

    Where do you live exactly? Check your local law

  • @bigcat said:
    Where do you live exactly? Check your local law

    Ok thanks

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