Setting Up Your Company Abroad- When Is a Notary Essential?

Setting up a company abroad can open doors to new markets and opportunities, but it also involves navigating unfamiliar legal systems. You may require the services of a notary during the set-up process. This article explains the role of notaries in international company formation and highlights situations where their involvement is necessary.

What Does a Notary Do in Company Formation?

A notary is a public official authorised to certify documents, verify identities, and witness signatures. Their role is to ensure that legal acts are genuine and properly executed. When setting up a company abroad, a notary may:

• Authenticate company formation documents

• Certify powers of attorney

• Verify shareholder agreements

• Witness the signing of contracts and deeds

  
  

Notaries help prevent fraud and provide legal certainty. Their certification often makes documents acceptable to government authorities and banks in the foreign country.

When You Definitely Need a Notary

Not all steps in setting up a company require a notary, but some do by law. Here are common situations where a notary’s involvement is mandatory:

Incorporating the Company

In many countries, the company’s articles of incorporation or memorandum of association must be notarised. This means a notary will review the documents, confirm the identities of the founders, and officially certify the paperwork. For example, in countries like Spain and Germany, notarisation is a legal requirement before submitting company registration documents.

Signing Shareholder Agreements or Capital Contributions

If your company has multiple shareholders, agreements between them often need notarisation to be legally binding. Similarly, when shareholders contribute capital in cash or kind, a notary may need to certify the transaction to ensure transparency and compliance.

Granting Powers of Attorney

If you cannot be physically present abroad, you might appoint someone to act on your behalf. A power of attorney document usually requires notarisation to confirm its authenticity. This step is crucial because authorities and banks will rely on this document to recognise your representative.

Real Estate Transactions for Business Premises

If your company plans to buy or lease property abroad, notaries often play a central role. They verify the property’s legal status, witness the signing of contracts, and register the transaction with local authorities.

Tips for Smooth Notary Involvement

• Prepare all your documents in advance and in the required language

• Verify if documents need translation or apostille certification

• Keep copies of notarised documents for your records.

About  

Michael Callaghan is a notary public in Essex, Suffolk and London. He is experienced in all areas of notarial practice. He was a solicitor for over 30 years, but he now deals exclusively with notary workAbout  

Michael Callaghan is a notary public in Essex, Suffolk and London. He is experienced in all areas of notarial practice. He was a solicitor for over 30 years, but he now deals exclusively with notary work.

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How Michael can help

Michael is familiar with carrying out the notarial requirements necessary for setting up your business abroad.

Please contact Michael to discuss your particular situation and for a no obligation quote.

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