Things you Must Consider Before Business Incorporation
Are you running a new business? You must think of incorporating, as it will establish your corporation as a separate legal entity and ease you with limited liability. A corporation is capable of doing things that an individual can do such as possessing property, having bank accounts, and signing contracts. You can seek external help for Company Incorporate in Singapore.
Importance of incorporation
Primarily, incorporation helps to limit your personal liability regarding business obligations. This is a great idea, especially when you have a lot of outside contracts. Moreover, with corporations it is quite easy to transfer the shares from one to another owner; it is also a good choice for selling the business or attracting fresh investors.
Consider a unique business name
You must have a different name for your business and you can’t copy the name of a registered business or company. You will probably find an online tool to search for similar business names.
You need to follow the restriction of using particular words in your business name like the word ‘bank’ or certain obscene words.
You must consider ending the name with ‘company’, ‘corporation’, and ‘incorporated’ or an alternative to such words.
In your incorporation articles, you should include some of your decision maker’s names. Two types of decision-makers are there 1) incorporators and 2) directors.
An incorporator prepares; signs and files the articles of incorporation. The responsibility or duty of an incorporator usually ends once the incorporation articles are filed and a board of directors is selected.
In some states, the applicant may need to list the initial board of directors of the corporation. The board of directors sets corporate goals and policies, designating officials who will administer the day-to-day business of the corporation.
In small businesses, usually, the board is made of up the owners, but it is not necessary for the directors to own shares in the business.
Business owner’s name
Since the owners of a corporation own stock shares in the business, they are known as shareholders. In your incorporation articles, you have to mention the number of stock shares that your corporation is permitted to issue, but there is no need of listing the names of the sharers. You should consider including the names of the shareholders as well as the number of shares issued to each of them in the internal records of your corporation.
The incorporation articles must indicate a particular address and a person seated at that address who can accept legal notices, documents, or lawsuits on behalf of a corporation. The address is considered as a registered office and the person is considered as a statutory agent or registered agent.
You can use your business location as the registered office, while an individual aged 18 or more or a corporation serves as the registered agent. If you have no office where you incorporate or if you consider having someone else function as an agent, you can go for a professional registered agent.
Company incorporation for foreigners may seem a bit confusing, but HeySara is there to help with their best and affordable services.