Company Incorporation
Company: A company is an entity which needs to be incorporated and it becomes a legal personality after being registered under the relevant Act of each country. Words like Pvt.Ltd and Ltd are usually found attached to a company name, describing its nature, formation, and establishment. It is different from a business firm and incorporating a company requires professional help like a lawyer or an accountant.
There are three main types of companies such as Private Limited Companies, Public companies, and foreign companies' branches.
Company Incorporation Benefits:
Company Incorporation Benefit 1:
Reduction in personal liability: A corporation is different from the person who owes it. Incorporating a company provides the owner, shareholders, and managers a protected legal shield when the company gets sued.
Company Incorporation Benefit 2:
Credibility increment: In the view of many customers and lenders a corporation has more credibility than a sole proprietorship or partnership as the corporation has long-term plans for its business. Because of the higher trust level, the customers are interested in investing more in a corporation. This helps corporations in getting great source of capital from the market than other types of companies.
Company Incorporation Benefit 3:
Separate legal entity status: Law considers an owner and his corporation as two separate legal entities. Owner doesn't have any personal liability attached with the corporation.
Company Incorporation Benefit 4:
Perpetual Duration: Death of the owner doesn't make any effect on the life of a corporation.
US Company Incorporation:
Nevada and Delaware, located in USA, is the main hub of limited liability corporations (LLC).
Nevada provides privacy, liability protection status, and certain tax advantages to corporations. In addition to this, Nevada doesn't place any state tax or corporate profits, state annual franchise tax or state personal income tax.
Company incorporation in Nevada doesn't require any minimum capital investment, owner's US citizenship, and doesn't pose any personal liability to the officers and directors of the corporation irrespective of the corporation alone.
Basic requirements to set up company in Nevada:
- At least two members are required to set up a company in USA and one member outside USA.
- The company should be registered on the address of Nevada only.
- A corporation or limited liability company must have a resident agent and a physical address in Nevada to acquire Nevada statutes
- It is required to provide photocopies of identities associated with the corporation.
- And, provide corresponding address of the corporation’s members.
Company Incorporation in Delaware:
The state provides a good business friendly environment to the public companies and offers publicly traded stock. The place poses low incorporation fees to the companies, charges low annual franchise taxes and no state corporate income tax for corporations located outside Delaware.
Benefits of incorporating company in Delaware:
- Corporation is considered as separate legal entity.
- At least one member is required to set up LLC in Delaware.
- Same as Nevada, no minimum capital is required for the corporation’s set up.
- Personal liability of members of the company is limited to the amount invested by them in the LLC.
- No tax liability for the foreign members of the corporation.
- Full ownership is allowed Non-US resident.
- Company Secretary is not required.
Requirement for setting a LLC in Delaware:
- The name of the company must follow the format of LLC.
- The company must be registered on the address in Delaware.
- Members of the companies are required to provide their identities.
- It is required to provide photocopies of identities associated with the company.
- Provide full detailed description of the company.
- Directors and officers are not required to be listed in the Articles of Incorporation.
Online company formation agent working for Delaware:
Coddan CPM: It is a company formation agent working to form an online corporations and limited liability corporations in different states of USA including Delaware, Nevada, New York, Florida, and California.
The agent finishes with the company's registration in a time span of 4-6 hours. It provides expert advice for the companies trying to setup themselves in the places stated above.
The company prepares and fills the Certificate of Incorporation with state office, provides certified copy of the certificate of incorporation to the client, arranges for resident agent in Delaware for 12 months, and a registered address of the corporation in Delaware for at least 12 months.
A professionally prepared 20 page Delaware Corporation in accordance to laws and ready to be signed are posted through e-mail to the client. In addition to this, consent documentation and minutes of the meeting are posted through e-mail only.
