What is Incorporation & Registration Information?
Incorporation and registration documentation is a set of legally certified company documents that contain information on the formation, constitution, and legal structure of your company.
Incorporation documents are the primary rules governing the functioning and management of your company. The different types of incorporation documents include:
- Certificate of Incorporation:A document that contains your company’s registration number and date of incorporation, issued by a government or a legal entity
- Memorandum of Association:A statement made by every shareholder explaining their intention to form and be a part of your company
- Articles of Association:A set of rules governing the operations, management and ownership of your company
- Share Certificates:A document certifying ownership of the registered shares of your company
- Statutory Registers:A set of official books for maintaining information on your company’s members, shares, directors and secretaries
The exact number and types of incorporation documents vary according to different jurisdictions.
Why is Incorporation & Registration Information important for business today?
Having a record of incorporation documents benefits for your company as it:
- Outlines the management of your internal processes such as the issue or transfer of shares, appointment of directors or compliance policies
- Defines the responsibilities of your board of directors
- Specifies the ownership structure of your company and responsibilities of your shareholders
- Defines the business objectives and key business segments
Maintaining your company’s incorporation documents also facilitates smooth operations. These documents are required when your company needs to obtain finance through financial institutions.
Why is Incorporation & Registration Information important for an event tomorrow?
Incorporation documents are essential if your company is involved in a deal because it:
- Builds investor trust
- Helps during the due diligence process
- Assists in resolving disputes
Pros of addressing Incorporation & Registration Information
- Regulates your company’s internal operations
- Expedites decision-making for transactions
- Essential to build your company’s credibility
Cons of not addressing this topic
- Exposes you personally to potential litigation as your company may not be considered a separate legal entity
- Hinders collaboration with financial institutions and government
