Company formation in Sharjah publishing city free zone is the legal process of incorporation of an enterprise. It can also be called a business registration. Both these terms are frequently used when incorporating an enterprise. In order to avoid confusion, the term “company formation” will be used here. However, if you are in Northern areas, the terms company formation and business formation are used to refer to the same process.
Requirements of Company Formation
Company formation requires the creation of a legal structure in which to operate a small business. This includes the founding of an insolvency practitioner, company secretary and register of companies. There is typically a submission to Companies House (the business registry) of information relevant to the formation of the new company. Read more here about company formation.
Procedure of Company Formation
Step 1: Once all this information has been submitted, it is usual for experts in the field to review the information and make suggestions as to the correct formation of the business entity. If the recommendations are successful, then the formalities of incorporating the business entity can begin.
Step 2: The next step is to file the Articles of Association with Companies House. This document is essential to protect the interests of those filing the Articles of Association and also helps to establish the liability of that entity.
Step 3: Forming a business entity also involves filing the statutory forms at Companies House. These include the Memorandum and Articles of Association. One of the most common errors made in filings is that the name of the proposed business entity is omitted from the Articles of Association. This causes the Articles of Association to be interpreted as if the business has no corporate name.
Avoid These Errors:
Another common error in formation is failure to indicate whether the business entity is not a partnership. It is always best to formally state the nature of the business entity at the time of its incorporation. For example, there are limited liability companies and partnerships and sole proprietorship. An advisable precaution is to ensure that the form for a sole proprietorship or a partnership has already been filed at Companies House.
Forming an LLC is a relatively simple process. With careful planning and research, even an inexperienced business owner can achieve the same result as those who pay professional formation firms. All that is required is that an application is submitted along with the relevant statutory documents too.