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The 7 steps of business incorporation
Do you feel that your company in Singapore is ready to go into second gear? Being engaged in Business Incorporation in Singapore may be a possible solution, provided that it is well planned.
No matter what field you work in as an entrepreneur - agriculture, technology, design, etc. - The managerial strategies, including incorporation, are abundant and can sometimes be disconcerting.
The terms "incorporation" or "incorporation" refer to the legal process of creating a "corporation". This indicates the legal regime of a corporation that constitutes a "corporation". A company has rights and obligations, just like a person.
Legally distinct from its constituent members, the corporation may, through its directors, take steps in its own name to sign contracts, open a bank account or pay salaries to its employees. Focus on the different steps to achieve your successful incorporation.
Step 1: Decide on the skill
Entrepreneurs, with a few exceptions, have the choice to incorporate their business either federally or provincially.
The choice of jurisdiction is important because it determines the operation of the company and the rules that apply to it. Thus, a corporation incorporated in the province is governed by the Business Corporations Act However; a company under the Business Corporations Act is subject to certain constraints. Other features of incorporation under federal law include the requirement that 25% of board members be the residents of the home country.
Step 2: Choose a legal status
Most private for-profit companies are incorporated, but it may be useful to validate that another legal status is not more appropriate. There are also general partnerships, limited partnerships and joint ventures. Also, some activities are best served by a not-for-profit corporation, cooperative, association or trust status.
Step 3: Choose and save a name
The simplest and quickest choice is to ask the register to assign the company a numerical designation. It is composed of a unique number. This is commonly known as a numbered society.
Step 4: Produce the documentation
On the one hand, there are the Articles of Incorporation which define the classes of shares of the company and the principal rights related thereto: the right to vote, the right to dividends and the right to receive the remaining assets of the company when of its liquidation. These documents must be submitted to the Registrar upon application for incorporation of the corporation, or within 60 days of the application for the initial declaration.
Step 5: Pay the fees
The Registrar charges a fee to receive and process the initial return.
Step 6: Obtain the certificate of incorporation
The Registrar proceeds with the constitution of the enterprise. He assigns him a business number and issues the certificate of incorporation filed in the enterprise register. From this point on, the company does exist, and only a court can cancel the articles of incorporation.
Step 7: Finalize the internal organization
Once the company is formed, its shareholders contribute capital by subscribing shares, which they must pay at least $ 1.
Then, its directors adopt the company's by-laws, establish its head office, fix its financial year-end and appoint its officers, since shareholders, directors and officers are separate functions, even if they can designate the same.
When there are several shareholders, they may enter into a shareholders' agreement. This is intended to avoid any legal confusion in the event of death, disability or other serious event among the shareholders.
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