Prerequisites for company creation

To create companies, you must perform this:

Activity	Cloud Provisioned	On Premise
Complete the LN/PLM installation, as described in the ERP/PLM Enterprise Installation Guide, that applies to the type of server and database you use.	Not applicable	Not applicable
Design the company structure. If you create a multicompany structure, you must determine the company numbers and the tables the companies share. You must also design the enterprise-structure.	Applicable, in a stand-alone PLM environment, you consider a simple single-company structure suffices.	Applicable, in a stand-alone PLM environment, you consider a simple single-company structure suffices.

This document does not detail why a specific company structure must be selected, there are other documents (specifically multicompany structures) which must be used to establish that with the solution architect, for your environment.