Forming a corporation, company, business

Brief guide to business

In law, a company refers to a legal entity formed which has a separate legal identity from the members, and is ordinarily incorporated to undertake commercial business. Although some jurisdictions refer to unincorporated entities as companies, in most jurisdictions the term refers to incorporated entities. Because of the limited liability of the members of the company for the company's debts and the separate personality and tax treatment of the company, it has become a popular form of business vehicle in most countries.

Corporation is a legal entity which, while being composed of natural persons, exists completely separately from them. This separation gives the corporation unique powers which other legal entities lack. The extent and scope of its status and capacity is determined by the law of the place of incorporation.

Investors and entrepreneurs often form joint stock companies and incorporate them to facilitate a business; as this form of business is now extremely prevalent, the term corporation is often used to refer specifically to such business corporations. Corporations may also be formed for local government (municipal corporation), policial, religious, and charitable purposes (not-for-profit corporation), or government programs (government-owned corporation).

Companies are separate and distinct from:

sole proprietorships

A sole proprietorship is a business which has no separate existence from its owner. Hence, limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. All debts of the business are debts of the owner. A sole proprietorship is not a corporation, it does not pay corporate taxes, but rather the person who organized the business pays personal income taxes on the profits made, making accounting much simpler. A sole proprietorship need not worry about double taxation like a corporate entity would.

partnerships

A partnership is a type of business entity in which partners share the profits or losses of a business undertaking in which they have all invested.
trusts, although conceptually trustees managing a trust fund for the benefit of beneficiaries is in many ways similar to the directors managing the company's assets for the benefit of the shareholders.
guilds

An association of people of the same trade or pursuits , formed to protect mutual interests and maintain standards of workmanship and ethical conduct. Historically guilds were formed as mutual benefit societies or small business associations, A guild was a trade union of sorts, since each crafter was a self-employed individual artisan or part of a small craft shop or co-operative. Guilds exist in modern and medieval incarnations.

unincorporated associations of persons, such as clubs, cooperatives and collectives.

A voluntary association (also sometimes called an unincorporated association, or just an association) is a group of individuals who voluntarily enter into an agreement to form a body (or organization) to accomplish a purpose.

Modern companies are generally formed for one of three purposes:

"non-profit companies", formed for social, charitable or quasi-charitable purposes to provide the sponsors with the benefit of limited liability and to form an administratively convenient mechanisms for the administration of the organization.
small business companies, usually formed by either sole traders or partners to take advantage of limited liability and as a means of tax avoidance, whilst still retaining overall control in the hands of the founders.
public investment companies, formed to enable members of public to invest in a business or enterprise without becoming involved in the running of it.
Companies have a number of other uses. They are not normally subject to rules against mortmain or perpetuity. Companies, being commercial entities, are often easier to utilise in financing arrangements than partnerships and individuals. Companies have a flexibility which can let them grow; there is no legal reason why a company initially formed by a sole proprietor cannot eventually grow to be a publicly listed company, but a partnership will generally always be limited as to the maximum number of partners. Companies are often used in tax.

form a ltd company

A limited company by shares. A type of limited company with liability limited to the capital invested, i.e. by the sale of shares. In other words the shareholder's personal assets are protected in the event of bankruptcy but they will lose the capital invested in their shares.

They could be Private or Public (Shares Traded on Exchanges). A private limited company's shares are not available to the general public, the major distinguishing feature between a private limited company and a public limited company. Most companies are private.

These companies have the suffix Limited (Ltd.) or Incorporated (Inc. - this cannot be used in the Republic of Ireland) as part of its name. In the Republic of Ireland "Teoranta" ("Teo") may be used instead, though this is limited mainly to Gaeltacht companies. "Cyfyngedig" ("Cyf") may be used by Welsh companies in a similar fashion. In forming a company you must apply to the relevant registrar - Companies House in Great Britain, the Northern Ireland Registrar of Companies in Northern Ireland, or the Companies Registration Office, Ireland in the Republic of Ireland - to be formally incorporated as a company. In India, application needs to be done with Registrar of Companies.

To set up a business in the Republic of Ireland, a private limited company may have a maximum of fifty shareholders.

A company must have at least one director and company secretary. They cannot be the same person. The company Articles of Association may have more specific requirements however.

Companies House is an Executive Agency of the UK Government Department of Trade and Industry (DTI). All limited companies in Great Britain are registered with Companies House and file specific details as required by the Companies Act 1985. In Scotland an office in the capital manages the work.

The UK has had a system of company registration since 1844. The legislation governing company registration matters is the Companies Act 1985 and the update in the Companies Act 89.

The registrar of companies for England, Wales & Scotland deals with all filings relating to the 1985 Companies Act, ensuring the document filings are kept up-to-date and deals with any breaches in the Companies Act.

Companies Registration Office (Ireland)

Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state.

Nevada Corporation is a corporation chartered under the laws of the U.S. state of Nevada.

Nevada, like the state of Delaware , is well known as a corporate haven. Many major corporations are chartered in Nevada, particularly corporations whose headquarters is located in California and other Western USA states.

The Council Regulation on the Statute for a European Company of the European Union contains rules for a European Public Company, called an SE (abbreviation for Societas Europaea, Latin for 'European Company'); there is also a statute allowing a European Cooperative Society (Societas Cooperativa Europaea, SCE). An SE can be registered in any member state of the European Union, and the registration can be easily transferred to another member state. There is no EU-wide register of SEs (an SE is registered on the national register of the member state in which it has its head office), but each registration is to be published in the official journal; as of mid-2006, at least 30 registrations have been reported.

Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many players involved (the stakeholders) and the goals for which the corporation is governed. The principal players are the shareholders, management and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large.

small business

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Incorporation
company incorporation

Incorporate

In some places you can apply Online in incorporation
Often a Tax Attorney can help form a company