WHEN IS IT TIME TO BECOME A MORAL PERSON | Business Minds

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10 Aug When is it time to become a Moral Person

10 Aug When is it time to become a Moral Person

 

Passing your company from a physical person to a moral person is simpler than you imagine and can bring you more benefits in the future. One of the dilemmas that entrepreneurs have is to choose the regime with which they will register their business.

When choosing a regime you should consider different aspects of your venture and the needs you have at the time of starting. If you started your business as a Physical Person with Business Activity, you can still become a Moral Person.

At Konfío we tell you when is the perfect time to become a Moral Person.

# 1 You already have partners

# 1 You already have partners

Maybe you started your venture alone and along the way you have been adding partners to grow. As soon as you formalize your society, it will be necessary to become a Moral Person. This in order that each and everyone have both their rights and clear responsibilities before what the law dictates. In addition to that they could be growing at a great pace and require the most important decision making.

# 2 You have several businesses

# 2 You have several businesses

If you diversified and decided to open more businesses, it is time to create different social reasons. So do not mix the results of each one and you have more financial control, therefore that is a moment to become a Moral Person. Another benefit that you can obtain from this is that by having each of your businesses set up independently, the situations that arise will be treated in the same way. Achieving to support all the heritage that you have achieved.

# 3 Your business bills more than 2 million

# 3 Your business bills more than 2 million

It is important that you keep the accounting of your business in order to check the growth that your company has had during the months or years of your activities before the SAT. As we said at the beginning, entering the tax regime as a Moral Person can bring more benefits to your business, because you could attract attractive investments and prove that you can be a good candidate for credit. So if you’ve already registered it’s time to take advantage of this.

Benefits of becoming a Moral Person

 

Build your company’s credit history

Build your company

Unlike the Individuals who obtain financing in your name, being a Moral Person you are building a credit history of your business. With this you can obtain better rates and payment terms when obtaining new loans for SMEs. Well, you would be showing the credit performance that your business achieves, specifically the debt capacity it can handle.

You do not pay VAT when acquiring credits

As a Moral Person you can save money by applying for financing. Under this regime you can save the VAT that is equivalent to 16% of the total amount you request. Because under the VAT law, this is one of the provisions that have been created to stimulate business development.

You can deduct your credit

You can deduct your credit

In your annual statement, you can also deduct the monthly interest payments you make to settle your credits. For this it is necessary to have the invoices of the payments made in the name of your company.

Switching from regime to Moral Person will bring benefits to your business. Is your company ready for the change?


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