What is Company Incorporation?

Post date: Sep 28, 2020 11:31:47 AM

The legal procedure to Company registration or corporate entity is termed as the Incorporation of a company. It includes the procedure of separating the assets, income of the firm from the owners as well as the investors. Incorporation of a company is the lawful procedures that engage declaring the corporate body separate from the legal owners or else the investors of the corporation.

What are the key features of Company Incorporation?

The company incorporation describes the method how the company is lawfully formed and brought into survival.

Incorporation of the company involves drafting as well as writing up the article of Incorporation and also recognizing the shareholders.

When two or more persons, at least seven in case of public ltd come together to form a corporation for doing legal business after disclosing their names in the communication of association and fulfilling the other lawful requirements. It is referred to as the Incorporation of the corporation.

Why do you need to incorporate your business?

You need to incorporate your business for –

• Savings of tax

• Protection of the liability

• The credibility of the business

• Ease of raising capital

• Perpetual duration

• Ownership transfer

• Corporate Veil

Incorporation efficiently creates a defensive sphere of limited liability known as Corporate Veil, which defends the interest of the company’s shareholders as well as directors. Thus, incorporated businesses can assimilate numerous risks that assist in the growth of the corporation as well as business without exposing owners, directors, and shareholders to numerous financial liabilities outside of their unique investments in the corporation.

Corporate personality

The Incorporation of the company assists in setting up a legal body of the firm irrespective and different from the legal entity of the stockholder, owners of the firm, which is dissimilar from the partnership firms. Are you looking out for a business adviser for company formation? Consider hiring Atrium Associates.