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, the 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.
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| Company Incorporation |
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
·
Privacy
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
