Certificate Of Incorporation
Certificate of incorporation is the required document in the formation of any company. It has different meanings:
- In U.S.A. it is used as a description of company’s articles of incorporation.
- It is used as a simple certificate issued by the government for the valid existence of the company in commonwealth legal systems.
How the Certificate of Incorporation is Important in the Formation of Company?
- From the date of issue of this certificate the company becomes valid.
- When all the documents are fulfilled then this certificate is issued to the registrar of company.
- The documents which are required by the registrar are memorandum of articles and association of articles.
- Once the company name is finalized by the registrar then the time taken for the valid existence of the incorporation is one to three months.
- At the end a formal application has to be made so that the name of the company should not be the same as that of the existing company.
After getting the certificate of incorporation the following procedure should be done:
Purchase a Corporate Minute Book:
Once the certificate of in corporation is received it is important to maintain all the records in the corporate minute book and the documents included in this book are:
- Director’s register.
- Securities register.
- Member’s register.
- Corporate by-laws.
- Minutes of all company meetings.
- Copies of any forms filed with the government.
Purchase a Corporate Seal:
It is important to have a corporate seal on all the agreements to avoid any hassles.
Complete Corporate By- Laws, Organizational Minutes and Issue Shares:
Once the corporation is set up its organization will be done in a corporate minute book. Corporate by-laws include the rights and the obligations of the officers. The organization of the corporation is done by doing a meeting with all the directors and the shareholders of the corporation and in this meeting one can:
- Approve and adopt the documents of incorporation.
- Elect directors.
- Appoint corporate officers.
- Issue shares to shareholders.
Set up a Corporate Bank Account:
To set up a corporate account the bank will require the documents such as articles of incorporation and it is necessary for all the authorized signing officers to fill the forms at the bank before accessing the account.
Get any other Permit or any other Licenses Required for Your Operation of Your Account:
As corporation is a legal entity so it requires the business number, PST, and worker’s compensation insurance.
After doing all these things the company is ready and the shareholders are the company’s owners.
Certificate of incorporation is also useful in forming the not-for-profit corporation but the requirements should be fulfilled designed by the not-for-profit corporation law which basically includes the restrictions on the words used in the names of the corporation. If certain words match with another company name then the later should require the approval before filing the form.
Once all these things are cleared then the complete certificate of incorporation along with the fees should be sent to the department of the state.
In U.S. when the articles of incorporation have been properly filed then the certificate is issued ensuring the existence of the corporation and after that these two documents are considered as charter which basically includes information such as corporation’s name, amount of shares and number of directors.
So, at last we can say that without the certificate of incorporation the existence of any corporation can’t take place.
