Business

How to incorporate a company?

In order to incorporate a company with in a small scale or larger scale you have to contact your Secretary of State who has the responsibility for registration of companies in your state. As a company is a legal person in the eyes of the law and has the liability to sue or to be sued since it can act as a person to buy or to sell a property or even can commit crimes or to act fraudulently.

A company or rather a corporation can be formed by filling the application for a charter with the respect state and this application includes the purpose or the intention of incorporating this company , the details of the members and the amount of capital and the rights and privileges of the members. After the incorporation in order to advertise your larger scale or smaller scale company you are able to use any sort of advertising method such as television or newspapers or billboard advertising to introduce your new corporation to attract the public. Even though this will cost it’s for the future investment of the newly incorporated company.

The success of the company is built up on the members trust and hardworking towards the company and the company is regulated by the law. The company also has to keep the accurate financial records of the company showing the separate legal personality between the company and its members.  If you don’t follow the rules and regulations of the company the Courts or the law has the right to pierce the veil of the company in order to sue the members who has committed the crimes as an advantage for the company given by separate legal personality.

incorporate a company

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The board of directors are designated by the Articles of Association which is the legal document including the intention of the company. The directors also have rights and duties in particular as given under The Companies Act 2006. The directors should assure the duty of care towards the company since it’s a legal person and to use the independent judgments with skill, care and diligent.

Be on the safe side

The companies are designed to serve the public with utter service and there are different types of companies in different streams such as in private, public or limited partnership, unlimited or chartered etc. The specific rules and regulations differ from each country regarding your company. A limited by Shares Company is the most suitable and popular type of private company for anyone to run a business for the purpose of generating profit while protecting their personal finances with limited liability. The members who owned the company can keep all the profits and they are responsible for themselves and they are responsible for covering business debts up to the value of their shares. If you are seeking non-profit ventures or charities c company limited by guarantee is more suitable. The personal finances of guarantors are protected by limited liability they are responsible for the value of their guarantees.

The public limited company’s shares are traded in stock market which means anyone can buy shares in this type of company. This is mostly suitable for very large companies and the personal finances of the share-holders are protected by limited liability.

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