The formation of new corporation/company is simply called an ‘Incorporation’. A company is a legal entity that is effectively recognized as a person under the law; it could be a business, a non-profit organization, sports club or a government of a new city or town.
Legal benefits of business incorporation -
• Personal assets protection - The most important legal benefit of business incorporation is that it safeguards the personal assets of the owners against the claims of creditors and lawsuits. In a corporation, however, stockholders, directors and officers typically are not liable for their company's debts and obligations as they are limited in liability to the amount they have invested in the company, for instance, if £100 in shares was purchased, no more than £100 can be lost. Corporations and Limited Liability Companies (LLCs) may hold personal assets like real estate, cars or boats. If one is personally involved in a lawsuit or bankruptcy, these assets may be protected. A creditor of the owner of a corporation or LLC cannot seize the assets of the company; however, they can seize their ownership shares in the corporation, as that is considered a personal asset.
• Transferable ownership- In corporation or LLC, ownership is easily transferable to others, either in whole or in part.
• Retirement funds- Retirement funds and qualified retirements plans, such as a 401(k), may be established more easily.
• Taxation- The Company is being considered as a separate entity from its owner who runs or operates it; hence the taxation is also being separately calculated for both individuals. For instance, in the United Kingdom, companies are taxed at a lower rate than individuals. Also, they can own shares in other companies and receive dividends. There are no limits on the amount of losses a company may carry forward to subsequent tax years.
• Raising funds through the share selling- Capital from investors can be raised for companies easily through the sale of stock.
• Durability - A company is capable of continuing indefinitely. Its existence is not affected by the death of shareholders, directors, or officers of the company.
• Credit Rating - Regardless of an owner's personal credit scores, companies acquire their own credit rating, and build a separate credit history by applying for and using corporate credit.
Your Limited Company is a Leading online company formation agent in the UK, which provides limited company formation and registration services to its customers. It also provides its customers with other additional services. The direct interface with the Companies House provides a speedy and efficient company registration service.
Through Your Limited Company’s direct link with the Companies House, customers are provided with an easy-to-use tool for same day limited company set-ups.
It offers its customers three packages, namely Bronze, Silver and Gold. It also provides its customers with web services such as web design, business banking and business insurance.
Friday, December 10, 2010
Formation of a limited company online…
Process of incorporating a business is nothing but a ‘Company Formation’, and it is also referred as ‘Company Registration’ sometimes. Under the company law enacted, the company has a separate legal entity to the people who own or operate it.
Today everything is going electronic, so why should this sector stay behind? The majority of UK companies are formed electronically on the same day. Companies can be created by individuals, specialized agents, solicitors or accountants. Many solicitors and accountants subcontract incorporation out to specialized company formation agents. Most agents offer company formation packages for less than £100, but it does not include the cost of witnessing documents or preparation of memorandum & articles of association for the company which would usually be carried out by a solicitor or accountant. Forming a company via the paper filing method can take up to 4 weeks.
E-Company Set-Up -
You can set up a company electronically using your own resources, but it is advisable to use a specialist formation agent as you need to decide on the following:
-The company’s set-up – whether it is to be a private or public company limited by shares or private company limited by guarantee.
-Company’s purpose and its capital requirements
-Availability of proposed company name and its acceptability
Process of Company Incorporation-
In order to form a new company, the Companies Act 2006 has set out the exact required documentation, which is different from the requirements of the previously 1985 Act. An application is made on Form IN01 to form a company, which is to be accompanied with a Memorandum of Association, the Articles and the correct registration fee.
Incorporating companies as limited by shares (private or public) must complete a statement of capital and initial shareholdings as part of the formation documentation, and the statement of capital is a new document. It is a snapshot of a limited company’s issued share capital at a given time. It is also needs to be provided in various other circumstances, including as part of the application to incorporate and with each annual return.
Your Limited Company is a Leading online company formation agent in the UK, which provides limited company forming and registration services to their customers. It also provides their customers with other additional services. The direct interface with the Companies House provides a speedy and efficient company registration service.
With the help of a direct link with Companies House, customers have been provided with an easy-to-use tool for same day limited company set-ups.
It offers their customers three packages, namely Bronze, Silver and Gold. It also provides its customers with web services such as web design, business banking and business insurance.
Today everything is going electronic, so why should this sector stay behind? The majority of UK companies are formed electronically on the same day. Companies can be created by individuals, specialized agents, solicitors or accountants. Many solicitors and accountants subcontract incorporation out to specialized company formation agents. Most agents offer company formation packages for less than £100, but it does not include the cost of witnessing documents or preparation of memorandum & articles of association for the company which would usually be carried out by a solicitor or accountant. Forming a company via the paper filing method can take up to 4 weeks.
E-Company Set-Up -
You can set up a company electronically using your own resources, but it is advisable to use a specialist formation agent as you need to decide on the following:
-The company’s set-up – whether it is to be a private or public company limited by shares or private company limited by guarantee.
-Company’s purpose and its capital requirements
-Availability of proposed company name and its acceptability
Process of Company Incorporation-
In order to form a new company, the Companies Act 2006 has set out the exact required documentation, which is different from the requirements of the previously 1985 Act. An application is made on Form IN01 to form a company, which is to be accompanied with a Memorandum of Association, the Articles and the correct registration fee.
Incorporating companies as limited by shares (private or public) must complete a statement of capital and initial shareholdings as part of the formation documentation, and the statement of capital is a new document. It is a snapshot of a limited company’s issued share capital at a given time. It is also needs to be provided in various other circumstances, including as part of the application to incorporate and with each annual return.
Your Limited Company is a Leading online company formation agent in the UK, which provides limited company forming and registration services to their customers. It also provides their customers with other additional services. The direct interface with the Companies House provides a speedy and efficient company registration service.
With the help of a direct link with Companies House, customers have been provided with an easy-to-use tool for same day limited company set-ups.
It offers their customers three packages, namely Bronze, Silver and Gold. It also provides its customers with web services such as web design, business banking and business insurance.
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