An incorporated company is a private or public company, with a total of up 99 members. The members are largely protected from personal liability should the company run into debt or other issues. There are many benefits to incorporating a company. An incorporated company can find it much easier to raise investment capital. Each member’s ownership in the business can be transferred, if they wish, to family members or sold to a member of the public. Even if one of the members or shareholders should die, the incorporation continues to exist, unless it goes bankrupt or is merged. You may however experience increased levels of taxes, as a member of such a company, depending on how your taxes are filed.
There are certain requirements and steps involved in incorporating a company. To begin with, you need to contact the relevant authority that is responsible for registering incorporated companies in your area. They can provide you with fee schedules, and any relevant forms or documents. It is wise to enlist the services of a law professional such as a solicitor to assist with you the process. This will save you a lot of time, as doing it by yourself can prove a lengthy process. You must decide which type of incorporated company you would like to form. The types available (in the U.K.) include a public limited company (PLC), an unlimited company, a community interest company, an industrial and provident society, a limited liability partnership, a private company which is limited by shares (Ltd.), a royal charter or a Societas Europaea. You may also have to register a company name, form a Board of Directors and issue any shares. There are a number of restrictions regarding selection of a company name. It must not be already in use,
You will need to draft the “Articles of Incorporation” (US) or “Articles of Association” (UK), depending on where your company is based, to include a Memorandum of Association. These documents set out the conditions upon which the company is granted incorporation and in which the company intends to operate. You must provide provisions for dealing with certain matters. It should include the company name along with its main objectives and goals. It should list the rights and duties of directors and other parties. The bylaws of the company must also be listed. This document must be completed according to the specified structure, with a copy sent, within the specified time period, to the relevant registrar.
Additionally, you will have to complete forms which require you to provide details of the company’s registered offices, along with a number of details regarding the company’s directors. The full names, addresses, dates of birth, occupations and any other directorships held by any incorporated member, should be clearly stated. A company director, or a solicitor on your behalf, will have to sign a declaration of compliance to swear that all legal requirements regarding the incorporation of a company have been adhered to. If the declaration is signed by a company director, it will have to be done in the presence of a solicitor, commissioner, justice or a public officer of law.
The Articles of Association of a company are generally available in the public domain once accepted and published.
About the Author:
Carlo Cretaro is a freelance writer who writes for a number of Irish Companies such as RegisterMyCompany.ie. He also works as a social media manager for various companies.