Incorporation of Company: Scenario in the USA
It can be stated that company incorporation is directly proportional to the amount and the nature of the development in trade and commerce that the country can undertake. In most of the jurisdiction, the steps as to the company’s incorporation are the same, but it may differ as an exception. Under this aspect, people will see the stages of incorporating the company in the USA and India. As in any country, some measures are taken in the United States, including:
Determination Stage: Under this stage, it can be said that the entrepreneurs need to determine all the basic things that revolve around the company. In this stage, the promoters need to fixate upon the company’s unique identity and the trademark.
Planning Stage: Under this stage and state, the entrepreneurs need to decide as to the company’s name and finalize upon the trademark and on its type, if it’ll be a corporation or a limited liability partnership.
Action Stage: The company is incorporated after submitting the necessary documents to the state filing office.
Incorporation of Company: Scenario in India
The steps as to the incorporation of the company in India are as follows:
Ascertaining the Availability of Names: The selection of a suitable name is the first stage in forming any business. The name that a company registers serves to identify it. The company’s name is indicated in the company’s memorandum of association. If it’s a public corporation, the name must finish in “Limited,” and if it’s a private firm, it must end in “Private Limited.”
Preparation of Memorandum of Association (MOA) and Articles of Association (AOA): A company’s constitution or rulebook is referred to as its memorandum of association. The memorandum outlines the field in which the firm will operate and its goals, and the type of business it intends to pursue. The Articles of Association are essentially a document that lays forth the company’s internal management regulations. In addition, the article establishes a contractual relationship between the corporation and its employees.
Printing, Signing, and Vetting of MOA and AOA: The Registrar of Companies frequently assists promoters in drafting the memorandum and articles of the organization. In particular, with promoters who have never written memoranda or articles before.
Power of Attorney: The promoter may then hire an attorney to complete the business’s formation’s legal and complex documentation procedures. This attorney will have the right to act on behalf of the company and its promoters. The attorney will have the authority to amend the memorandum and articles and any other documents filed with the registrar.
Grant of certificate: It can be said that after this, the company will be granted a certificate of incorporation.
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