In many jurisdictions, you must pay a state duty in the prescribed amount when registering a new legal entity. However, this is not a tax. The company becomes a full-fledged taxpayer only after completing the registration procedure and is registered with the tax office of their country. Taxation depends on the type of activity, source of income, and many other factors.
To register my company, it is frequently essential to deposit the authorized capital into a bank account. This is required to prove the company’s trustworthiness. The riskier the activity is planned (for example, the banking or financial sector), the higher the amount paid. The difference between the authorized capital and the duty is that the duty is paid to the state and is non-refundable, even in case of refusal. While the authorized capital remains on the account, it can be utilized for development and investments.