Are you an up and coming entrepreneur who plans to start a new company? An experienced professional shifting country?
Fear not, the process is not as difficult as you think. Incorporation can be done by just about any individual, regardless of experience.
Millions of companies are registered daily across the world, the total number of countries is quickly approaching 200 million. Source: datapo
This article teaches you how to make company incorporation a fast, easy, and hassle-free process.
What is incorporation of a company?
Incorporation of a company is a reference to the legal procedure used to form a company or some other corporate entity. Such a company can be legally recognized as its own entity. They may be identified with terms like “Inc” or “Ltd”.
There are two main divisions of corporate entities:
- C-Corps: These types of companies are taxed twice, once at the company level and once at the shareholders’ income tax.
- S-Corps: For S-Corps, profits and losses pass through an owner’s tax returns and are taxed at their own income tax rates
Why is it necessary to incorporate your company?
Incorporation of business is a significant step in the growth of a company. It gives weight to the name of your company, customers, investors and lenders tend to take this term quite seriously.
The title of incorporated business grants you, the owner, and other shareholders several tax benefits and protections against lawsuits and other legal dilemmas. This, as well as the added label, will be your key to a future in the business world.
Here are a few key tips to remember when incorporating a company:
Being Aware of Local licensing Laws and Zoning Structure:
Being well aware and staying within the legal system of a state is the first rule when setting up a licensed corporation.
Licenses are not a prerequisite for all industries, however, industries like the food and beverage industry, education, healthcare, and childcare do require special permissions.
Making sure you have the clearance of all the required governing bodies before the actual registration can save you a lot of hassle.
Using Companies and Agencies to Assist with your Registration:
For most new entrepreneurs and those planning on starting a company abroad, setting up your first business can be quite scary, especially when you incorporate in Singapore, Malaysia, and other such countries where there are few direct means for a foreigner to register a company directly.
Hiring a registered filing accountant or a director of native origin is the only way to get your company up and running. This service is offered by several agencies and can help get the registration process go smoothly.
Collecting the Required Documents:
Having the necessary documents in hand when going to register your company will help the process run smoothly. In most countries the required documents will include:
- A unique name which you must reserve.
- An article of incorporation or corporate charter includes specific details about the business such as the type of business conducted, purpose and number and type of shares.
- Identification details and address proofs of your company’s directors or registered agents may also be required.
The required documents will be available on the website of most financial ministries of the country or will be explained by the agency.
Post Registration formalities:
Once your documents have been verified by the authority in charge and you have been officially registered as a company there remain many things you have to do.
These include:
- Setting up a corporate banking account, for most corporations having a corporate banking account is imperative to conducting company transactions.
- Conducting your first board meeting, this is where the board members formally adopt articles of incorporation, pick a seal, issue shares of stock to shareholders, and officially elect officers.
- Calculating your estimated revenue.
- Starting a corporate records book.
- Maintaining tax records.
Following these hacks while setting up your first company will streamline the path to your dream corporate. By following local laws and regulations, hiring agencies when required, and having the required documents at hand, your incorporation process will be a breeze.