The unit of business that has its own rights aside from the owner is what is called as the company. Loans can be obtained by the company and they can be sued and sue too all that without the owner having an attachment to them. For that reason the company is the most favorable unit of business among many others. The company’s description can be fit to the standards of the company due to such reasons. Because the government taxes the companies at a lower rate, it is seen as if the government promotes their development. However, the starting needs one to expand and have a number of items to help them pass as companies. At a company’s incorporation, there are a number of factors that should be considered.
The first step is choosing the company’s name and business structure. The business name should be chosen to ensure that the clients should be able to relate themselves there and also help the unit stand out. The limitation here is that the name chosen should not be used by any other unit of business. An extension like the limited and corporation should be chosen because they are the ones that describe the structure of the business.
Selection of the management team is the second step to undertake. The directors of the business should be named as this is a requirement at the formation of a company. The directors serve in the capacity of the business’ owners and that means that they help in the day to day operations of the business.
Consideration should be given to the step of share stock selection and the par value. The minimum selling price of a single share is called the par value. The businesses units of ownership are what the shares are and they are the ones that enable the company to be able to raise finances. A nil par value should be chosen so as to attain flexibility with the share prices.
A certificate of incorporation should be obtained in the next step. The registrar of companies getting the request of the company formation is what this step involves. The registrar is the final person who will verify the details of the company and make sure the business proposal is legitimate. There is the listing of the business name, its operations and business premises in the clauses there are in the business. The relevant paperwork is issued at this step too. This step has also to have the relevant documents like the licenses and certificate to operate among others. The company is ready to run once all these steps are undertaken.