People think forming a company is an easy thing that requires capital and machines for production; well this is not the case. The formation of a company requires very critical processes and considerations. Some of these considerations involve incorporation of a business under the company law. These laws are used to govern a company or a corporation as an entity that is distinct from the people who own or operate the company. Many companies are formed or rather created by solicitors, individuals or groups out of specialized company formation agents. These agents offer company formation packages under a certain fee. People who intend to form companies should be aware that the fee charged for filling out paper work with the company house does not entail the cost of witnessing documents or preparation of memorandum or articles of association for the company. These are legal documents used to give the company some form of legal status. They should be available during the initial steps of forming the company. The whole process also requires clear guidelines such as partnership agreements that elaborate what happens when the business owner passes on. The partnership agreement will help in allocation of the owners’ shares among the next of kin or their partners. This paper will discuss some of the important areas that should be addressed during the formation of a company as well as give an overview of what needs to be done to make it effective.
- It would specifically outline the legal requirements involved in the process of forming a company.
- It would state the required number of individuals who can form a company according to the requirements of the law
- Different countries have different legal requirements in creating a company, depending on the nature or type of company to be formed.
- Processes involved
- Forming a company involves a lengthy process, which involves submitting the required documents in various offices for verification purposes.
- This section will explain the entire process of forming a company, from just an idea to a final legal separate entity. The timeframe involved would also be outlined in this section.
- Fees Charged
- Different types of charges are involved in the process of forming a company.
- All the required fees and how and to whom they are paid will be stated in this section.
- Examples of such fees include the stamp duty, and the verification fees
- Evaluate the Documents needed in the formation process
- Legal Requirements of the company
- This section will outline all the required documents in the process of forming a company
- Whereas certain documents explain the relationship of the company and its stakeholders, other establishes the relationship of the company and the outside world.
- The contents of each document would be explained under the specific documents as would be outlined in this section.
- Memorandum of Association
- Article of Association
- Articles of Incorporation
- Partnership Agreements
- This section would give the overall recommendation on the study
- All important factors as to how a company is formed and what is required in the entire process would be stated in this part.
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