REGISTER An operating company

An operating company produces goods or services for sale. It is the primary revenue-generating entity of a business and is responsible for the day-to-day operations of the business. The operating company is often a subsidiary of a holding company. It will enter into contracts, engage with customers, and hire employees. Operating companies are directly involved in the production, marketing, and distribution of goods and services (including digital goods and services). 

Whilst an operating company handles the day-to-day operations of a business, it is not the only type of company that you can register. Holding companies own or control multiple subsidiaries and they provide lots of benefits that operating companies do not. For example, a holding company can offer a flexible structure for growth and hold valuable assets belonging to the business including intellectual property, equipment, and cash.

Holding companies are also sometimes used as fundraising companies, as they are ideal for organizing and conducting activities to raise funds. Learn more about registering a fundraising company with help from Legal Nodes.

Operating companies are designed to distribute goods and services, and are subject to consumer, data protection, and compliance regulations. An operating company doesn’t have subsidiary companies and is not the most suitable instrument for fundraising or for holding assets.

At Legal Nodes, we categorize operating companies by their specific purposes: 

• R&D (team) hub for product research and development and team employment
  
• Fintech / crypto service provider for companies engaged in regulated financial or crypto asset services 
• ‍Token issuer company for the regulated issuance of digital assets (tokens)‍

• Banking / local currency acquirer for scaling into new markets and connecting local payment-acquiring services

The costs to register a company will include the cost of the Growth Plan subscription starting from $899 a month. It will also include the cost of the registration services provided by the registered agent working on your legal tasks. Registered agent costs start from $200, depending on the country in which you choose to register your operating company.

Company registration typically takes between 2 and 6 weeks to complete, depending on where you choose to register your company. In some countries, like the UK and Estonia, the registration process will take approximately 2 weeks to complete, while in the UAE the process can take a little longer, usually around 6 weeks.

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To help you understand how long everything will take when registering your company, we provide an exact time estimate for each company registration task within your Legal Nodes subscription.

Our subscription provides you with critical support to help ensure your company registration process goes smoothly. We’ll provide you with:

• Guidance on choosing the best jurisdiction and entity for your business case
• Guidance on how to fill out the registration forms and questionnaires correctly
• Access to the most suitable professional service provider for each company registration task
• Long-term strategy support including understanding how your operating company can be utilized by your business in the future