Key Aspects Of Company Registration
Legal Structure
Before registering your company, you need to decide that what type of legal structure that best suits the required business needs. Some of the common options for the legal structure includes Sole Proprietorship, partnership, LLC (Limited Liability Company), corporation, etc. Each of the legal structure has its own advantages and disadvantages in the terms of taxation policy, liabilities and various regulatory requirements set as per the government
Choose A Name
The next aspect is to select a name for your company as per the business type. The company has to verify the name by the jurisdiction to make sure that the name is already taken by some other company or the name you have chosen for your company should not violate any trademark of some another company.
Registered Office
The company is required to provide with a permanent address for the registration of their company so that in case if the government must send a correspondence, they have a verified address to which they can send to.
Article Of Incorporation
The company is required to prepare a set of all the necessary documents required for the registration of the company. These documents may include the AOI (Article of Incorporation) and MOI (Memorandum of Association) and al the other legal documents required that outline the purpose, structure, and the internal regulations of the company.
Registration Process
After that company is required to submit all the documents and fees to the appropriate assigned government agency which is responsible for the registration of the company in the jurisdiction. This government could be at a nation level or could be at the state or provision level as per the place you are situated.
Tax Registration
After the successful registration of the company the company are required to obtain a tax identification number or register for taxes such as VAT (Valued Added Tax) or sales tax, depending on the business activities and the regulations in your jurisdiction.
Compliance Requirements
The company must ensure ongoing compliance with all the legal and regulatory requirements which includes annual reports, paying taxes, and maintaining all the corporate records.
Licenses And Permit
Depending on the nature of the business the company is operating they may need to obtain specific license or permits to operate legally in the country. These licenses could include industry-specific permits, health, and safety license, or all the environment permits.
Bank Account
The company must open a separate bank account from there personal account so that they can manage the company finances separately from that account
Consult Professional
A company must consider seeking advice from legal, accounting, or business consulting professionals to ensure that they comply with all legal requirements and make informed decisions about your company structure and registration process to avoid all the future problems that may occur to them
Types Of Companies
There are several types of companies, each with its own characteristics, advantages, and disadvantages. Here are some common types:
Sole Proprietorship
it is a type of a business which is owned and operated by a single individual. The owner of the company is fully responsible for all its debits and liabilities and that owner bears all the profit earned by the company.
Partnership
a type of business which is owned and managed by two or more individual. The profit earned by the company is shared between the partners equally or as per the deed signed buy them and both are responsible for the decision making in the company and the loses that the companies bear.
Cooperative
It is a type of company which is owned and operated by its member for their mutual benefits. Cooperatives can take various forms as per needs such as consumer cooperatives (those who use cooperative services), worker cooperative (owned and operated by the employees of the company), producer cooperative (owned by the producer of the goods and services)
Joint Venture
It is a type of company in which two or more companies come together to form an entity for a specific purpose or for a particular project for a specific period. The profit earned by the project is equally distributed between the companies or as per the agreement signed by the companies
Limited Liability Company
It is a hybrid company structure that combines the limited liability protection basically it means that their liability is typically limited to their investment in the company. These companies are not directly taxed by the IRS (Internal Revenue Service) as the tax is paid by the member from its personal income tax.
Benefits Of Company Registration
Registering a company benefits a company in various ways that helps the company to grow, gain credibility, and operate legally in the market. And here are some of the advantages of company registration.
Liability Protection
One of the benefits to register a company is that it helps in separating the personal assets from the company assets. In case the company is under huge debts and is sued in some cases registration makes sure that the assets of the owner are protected in all cases.
Trust
A registered company as compared to other often gain more credibility and trust from the customers, suppliers, and investors. It helps to bring more credibility to the company and thus create a level of professionalism and commitment.
Access To Funding
Registration companies have a access to easy funding, all the companies that are registered are provided with funds from all the banks and government institution much faster that the unregistered companies due to its legal recognition the investors are use to invest more in these companies as compared to other.
Brand Protection
After a proper registration of the company, it helps you to protect the company brand name and identity legally that helps in preventing others from using the same name for their company.
Tax Benefit
Depending on the various jurisdiction and type of company after the registration it helps in various tax benefits or various deduction if available that are provided to them rather than to the unregistered one.
Continuity
A registered company has a concept of perpetual succession which means that if the ownership or the shareholders of the company changes the company is still exits and good to function. This ensures the longevity in the business future.
Expanision Oppertunities
In case the company must expand its business to other regions or markets its easy for them to expand their business as they are registered with the government the rules in other jurisdiction for operating are prerequisite for them.
Governments Contracts
Government announces various big projects for the companies and these contracts can only be undertook by the companies who are registered so registration helps the company to avail the opportunity to undertook these contracts and expand their business in all possible ways.
