Incorporating a company is the first step towards business registration, and it’s also a critical milestone in one’s company’s life. Business owners need to decide which type of legal entity they want to be (LLC, corporation, or sole proprietorship) and how they want to name their business. Owners looking to register a company can do so online in today’s scenario. The next step is filing articles for incorporation with the Secretary of State or equivalent office. Once this gets done, a certificate of incorporation gets issued. This certificate will show that one’s company has been incorporated.
Registration of Companies
Registration of companies is a legal process. Various companies help in the registration of companies. The company registration process can vary from country to country and is complicated, time-consuming, and tedious.
However, services that allow owners to register a company through digital means make it immensely simpler for them to do so.
Incorporation of companies
The procedure for company incorporation usually involves choosing a name and filing articles of incorporation with the state’s Secretary of State or equivalent office. When businesses opt for solutions from agencies offering online registration, these incorporation documents are processed quickly. Thus, many organisations prefer such solutions today.
Separate legal entity
- A company is a separate legal entity from its shareholders. It has its legal rights and obligations different from those of its owners. This activity means that owners involved in a business may want to consider setting up a company. Otherwise, they will be personally liable for any debts or other liabilities incurred by the business. The people running the company are referred to as directors or officers. However, they aren’t shareholders themselves because they have no ownership interest in it (although they may have some personal liability).
Having separate legal personalities has many benefits. For example:
- Owners need not worry about creditors suing them personally if their corporation goes bankrupt. Only their corporation will go bankrupt, and creditors must collect what’s owed from its assets after bankruptcy proceedings end—but only after all secured creditors’ claims get paid first!
Limited liability is a legal concept that means that the shareholders are not personally liable for the debts and obligations of the company. This only applies to companies and not to individuals.
The main effect of this liability is to reduce the risk for lenders (investors) who lend money to a company because if the company cannot pay its debts, then it cannot use its assets (including shares in other companies) to pay off those debts. This reduces the risk for lenders compared with investing directly into businesses or lending money to individuals (who may have high levels of debt).
Benefits of registration of companies
One of the major benefits of registering a company is that it makes it easier to raise investment. The capital market is always looking for viable companies, and when one registers their company, it gets listed on the stock exchange. This activity allows investors to invest in one’s business and increase its value. Another advantage is that if one decides to sell their business, being registered makes it easier for potential buyers interested in acquiring an organisation with a good reputation and financial stability.
Tax authorities perceive a registered company as a permanent structure and may receive tax incentives. Tax incentives can be in the form of tax holidays, reduced rates of taxes and exemptions from certain taxes such as VAT, income tax etc.
Incorporation process- Simple and easy!
Company incorporation is the process of creating a new company, also known as a “company limited by shares” or Ltd., under the laws of any state. The process typically involves filing articles of incorporation with the state’s Secretary of State or equivalent office and publishing notice of such in newspapers. Company registration is usually a simple process and can be completed in a few days.
The company registration process is the first step towards establishing a business in any country. The incorporation of companies has become easy and convenient with the introduction of online filing and submission of required documents. Thus, many individuals prefer such solutions today.