Company formation is the situation in which a business becomes a company. It is good to note that a company is considered as a separate entity from its proprietors and those who operate the day to day business operations. When a business owner want to convert the business into a company, there are essential documents that are required by the board that regulates company operation. Other than the necessary documents that one need to submit to the registrar of companies, one also need to pay for the registration fee. First and foremost, those who need to have companies need to have an article of association which is a document that clearly outlines the rules of running the company's internal affairs.
The law requires those who want to register their companies to have an article of association document which is signed by every partner in the business in the presence of a witness. The other essential document that a company need to have is the memorandum of association which contain the names and signatures of the subscribers who wish to form the company. The document is essential since it clearly outlines the objectives of the company and its relation with other investors. When you want to register a company; you can submit the necessary document through online by sending the document to the registrar of companies directly to their websites, alternatively, you can visit their offices and submit the documents. You may refer as well at http://www.dictionary.com/browse/formation.
The following are the different types of company, including public limited companies, unlimited companies, private limited company, limited liability partnership, limited partnership, community interest company, among others.
Company formation at www.myasiaexplorer.com has numerous benefits, some of which include the following. One of the essential advantages of company formations that the owners tend to benefit from limited liability protection. In addition, since the company is taken as a separate entity from its owners, any debts and liabilities of the company are treated separate hence are not the responsibility of the owners. Creditors cannot use the company owners'' personal property in paying for the debts since the proprietor's properties legally considered to be different from the business assets.
The other advantage of forming a company is that a company will be in a better position to create credibility with potential customers, employees, vendors and partners. In addition, if you want to transfer the ownership of the corporations, you can do it faster and easier. Besides, it is easier for a corporation to raise capital since they have easier access to capital sources. Banks and other financial institutions are willing to issue financial assistance to corporations than to individuals.
A corporation at myasiaexplorer.com has unlimited life since its existence does not depend upon its owners. On the other hand, corporation do gain tax advantages including deductible health insurance premiums, savings on self-employment taxes.