How to Spend Less Time on Your Company Incorporation and Be More Productive
Whether it is a new company or an existing one that you are incorporating to gain from the benefits and expand the business, the process is usually tiresome. That is due to the much paperwork required and mandatory procedures that you must follow for a successful incorporation certification. The government is very thorough in doing any business with a corporation to ensure they adhere to taxation laws and responsibility policies. Here’s a guide on how to spend less time on your company incorporation and be more productive.
What Are the Benefits of Incorporating Your Business?
Incorporating your business comes with some protection and tax benefits that may save you both time and money. According to business incorporation specialists at sleek.com/sg/incorporation/, with incorporation, you get to enjoy more of the available benefits to corporations today. If you are wondering what benefits corporations get to enjoy and other forms of business don’t, well, here you go:
1. Protection of personal property
By registering the business as a corporation, you relinquish your direct relation to the business. The business is recognized as an entity on its own, with its tax identification number. It’s therefore responsible for anything that happens in it and to it. And the effects are not transferable to shareholders and the directors of the business. However, it is exceptional when the stakeholders participate in graft and fraud using the business and personal benefit.
2. Establishing a business identity
Your business will have a life of its own. You can concretely create a brand that is bigger than you. You can build trust for the business and commitments to suppliers and clients alike.
3. Perpetual life for the business
Aforementioned, a corporation has a life of its own. This means that it can survive long after the initial directors are no longer in the company. A good example is multimillion-dollar companies like Cocacola.
4. Transfer of ownership
Ownership can be transferred by the current directors to others; through mergers or selling the business.
The business enjoys tax reductions that would not have been available if you were still running it as a sole proprietorship or a partnership. Corporate tax holidays and reduction stimuli are possible now.
6. Building credit and accessing financing
The business can build a credit score independently regardless of the credit score of the directors. The company gains access to loans and capitation from investors and financial institutions.
With these benefits inclined with incorporating a business, this may be the best solution to any future inconvenience that the company may face. You, as a business owner, are excluded from the liability together with your shareholders. The business claim and debts are capped to the value of the business, not its directors and shareholders. Remember to always take into account shareholder’s rights, as an essential part of the company’s
The Process of Incorporation
- Check the availability of the corporation name with the office of the registrar of companies.
- Draft the Memorandum of Association and Articles of Association explaining the relation between the business and its internal human resource. The MOA acts as the constitution of the corporation guiding its objectives and operations.
- The registrar of companies confirms the MOA and the Articles of Association through vetting. If they meet all the requirements, they are printed and signed.
- Grant the Power of Attorney- a lawyer who will act in place of the corporation members and directors. The attorney is charged with the authority to perform changes in the business name and all the filed legal documentation.
- Submit any other documents required by the registrar of companies, like particulars of directors, business address, and consent forms.
- Prepare a statutory declaration stating that the business meets all the required documentation and obligations.
- Registration fees payment
Incorporating your business is the best way to exclude yourself from the risks involved in being a sole proprietor that may pose a liability to personal property. You can build credibility in your operations and access funding faster for expansion and business operations. The business incorporation application requirements vary. A consultation with the office of the company registrar may help with insight.
Using the services of an expert incorporation service provider removes the uncertainty of process success, as the practitioner has been involved in hundreds of such applications. You also get to enjoy international experience essential when you want to expand the business geography.