Is An Attorney Important In The Formation Of A Corporation?
In each country, there are specific laws that govern the formation of companies. These laws are known as corporate laws.
Corporate laws state the documents that are required for the formation of companies. These documents include;
- Incorporation certificate-this is a document that contains the fundamental details of the company including its name, date of formation, and other key company details.
- Memorandum of association- it is a document that contains the factual details of a company such as the founders’ names and pioneer members. It should also show that the members have conformed to the company act.
- Articles of association- this document contains the rules on how activities in the company will be conducted.
In a process such as the formation of a company, a lawyer must be present during the whole formation process. Some law firms specifically offer corporate law service and are therefore well experienced in all they do.
The law firm would not only offer advice and assistance during the formation of the company but also provide legal advice as the company continues to grow.
One of the major issues that the majority of the companies may require assistance with is the corporate paperwork. This is a set of documents that prove to be crucial during a lawsuit, purchase, or even an audit.
What documents are contained in corporate paperwork?
Documents used in the formation of the company
These include the updated format of the formation documents mentioned above. The company should always ensure their documents even with the slightest change. This change could be inclusion or withdrawal of a member, amalgamation with other companies, change of physical address and so much more. All these should be updated to avoid any issues in the future.
Company objectives
These are documents generated by the company that state the day-to-day running of the company. It should also contain the minutes recorded during corporate meetings.
Failure to do the company could get them in trouble as they could be accused of not following the corporate laws.
Yearly reports
The company is supposed to make sure that it is inscribed in all levels to ensure that their documentation is updated often. It is also vital for the company to ensure these documents are kept safely.
Relevant partnership documents
These documents should contain all information dealing with the ownership of the company. It should also contain all information concerning the activities of the company from the partnerships to the other minor activities.
This documentation should be organized and safely stored to avoid possible misplacement.
If one wishes to set up a business it would be advisable to do so as a corporation. This is because there are certain supremacies that this type of business gets to enjoy. These include;
Corporations have limited liability- this means that the founders and members are assured of the protection of their assets as the business is considered a separate legal entity.
They can raise funds easily- corporations are permitted to sell their stocks hence making it easier for them to raise funds and grow.
They have unlimited existence-the business continues to operate regardless of whether the founders are still there or not. This means that the business can continue its operation regardless of the owner.
Those are just some of the benefits enjoyed by corporation owners. It is, therefore, a business venture to be considered.
