Limited companies are companies whose liabilities are limited. After the company has been arranged, businesses have their own financial and assets, which are separate from the owner. Therefore, shareholders are responsible for debt to the amount that has been invested in business. The company is seen as an entity that can experience legal action. Company formation requirements include:
· Company name
The company name must be included with the identifier “Limited Company Limited Company). The owner needs to conduct a search for the availability of names. However, the state has the right rights of approval to ensure the name of the proposed company is not used or similar to the name being used.
· Business interests
Customers who form companies need to explain what companies are formed to provide or do. Two types of purpose clause include general or specific clauses. General clauses are accepted by several states. Klausul shows what the company formed to do. On the other hand, some countries need a complete explanation of the company / service company seeking to provide – this explains why the specific clause is needed.
· Memorandum Association
This document contains the name and signature of the customer that forms the company. For companies that are limited by shares, there needs to be a commitment that each customer will apply to at least one share.
· Article Association
Article Association sets the rules for operating the company. This includes details that operate companies, legal responsibilities and internal management affairs.
· Registered agent
All countries need a limited company to have registered agents that receive taxes and legal documents important for the company. Therefore, registered agents need to have an address in a state of merging. He must be available for consultation during normal working hours. Some business owners utilize registered service providers to ensure important documents are handled professionally.
Organizers are a company or person who prepares and submits the formation documents needed by the state. Many countries need a name, signature and address of the organizers to be included.
· The address of the company’s law
Some countries need submission of legal business principles or addresses. In other states, the address is optional.