“Make something people want includes making a company that people want to work for”. This quote says the importance of having a company for the people who are efficient in accomplishing the task. And so the people are paid for their designations and works they do for their good stand in the society. Company Incorporation in Chennai says that also the people with good knowledge and business ideas can come together and start a company. Certainly people need to know about marketing the business because in this competitive world, business tactic are important since it is running a company. Such company must be registered for having the goodwill for the company itself in the society. There are many kinds of companies, like One Person Company, private and public limited company and so others and each and everything of those companies should be registered. MCA which is called as Ministry of Corporate Affairs is primarily concerned with administration of companies act and competition act. Company Incorporation in Chennai says that MCA is involved in competition act to prevent the adverse effect of competition and to have steady stand for the competition in market. Also it carries out functions of the central government. The companies act was introduced in the year 1956. Based on proposed revisions of the companies’ act 1956, present committee was formed on 2nd December 2004. The present Companies act 2013 speaks about the law covering incorporation, dissolution and the running of the companies.
Benefits of company incorporation
Company incorporation refers to the legal processes involved in forming the corporate. Such companies can be identified by the extensions like ‘Inc’, ‘Limited’. It gives the benefit of liability protection. Company Incorporation in Chennai says that the liability of the owner is limited to the investment that the owner has made in to the business. It does not mean that owner is not responsible for anything that is happening in the company. Sometimes he will be held responsible for other activities too. Piercing the corporate veil is the term used, when limited liability is losing its protection. So the owner is wholly answerable for the liabilities. Also misuse of funds and conflict of interest happens when the liability is not limited. Company Incorporation in Chennai says that there are three common corporate structures called C Corporation, S Corporation and Limited Liability Corporation. The C Corporation is equivalent to Private limited company. The S corporation is equivalent to Limited Liability Corporation. The difference between C and S Corporation lies in the taxes. The C Corporation pays tax along with the income. The S corporation does not pay the tax but they report the company revenue as their personal income. Also there are differences in terms of ownership, formation and taxation. When it comes to C corporation, anybody can be owner also there can be many owners. But in S corporation owner’s limit is fixed. If you consider the C corporations it is default. If you need S corporation you need to have many forms.
Types of Corporate structure
Company Incorporation in Chennai says that there are four types of organizational structure. They are functional, divisional, matrix and hybrid. In the functional structure, in the same department employees are grouped when they have equal skill, so that the employees can communicate effectively. In divisional structure, there are many work teams, which can provide. Matrix structure provides the combination of both functional and divisional. In this form of structure, there is freedom for decision making. There is also more communications between inter departments. But one disadvantage is it is of higher costs. Hybrid structure is greatly adopted by many organisations. Company Incorporation in Chennai says that studying corporate structure is the basis for building financial models. And it is said that functional and divisional structure are the easiest structures.
Steps to incorporate the company
Company Incorporation in Chennai says that explains the following steps. First step is to make sure that the name is available or not. The people who propose to start the company should definitely write letter to the Registrar of the company in that particular state. Secondly the article of association and memorandum of association should be prepared. Documents like e- Form No.32, e-Form No 18 and e-Form No 1 have to be submitted. All such documents will be signed, stamped and provided with legal terms by the attorney. On payment of the fees, Registration of Certificate (ROC) is given.
Significance of Incorporation
Company Incorporation in Chennai says that when the company is incorporated the shares can be transferred, succession is perpetual and it is treated as separate legal entity. Only when it is treated as separate property it can sue other people. Also the company itself can be sued. There is greater flexibility and it has greater independence to form the policies. It is easy to raise the capital and the loans can be got so easily. For long running of the business the company should be incorporated and it is not a petty shop to start and stop the business soon. It is business where the loss is expected a lot. To sustain in the competitive market field, the incorporation of the company is important. When company meets with the loss, then the owner’s ignorance also is blamed. So the owner must be aware of all the ethical tricks to take over the business. Efficient people with business tactics should begin the company. So the owner should make advertisements to attract the people. Also when losses occur the company assets only will be taken leaving behind the owner’s assets. Company Incorporation in Chennai gives the recent updates on company incorporation. It says that All MCA21 services are available for the stakeholders. They can visit the website www.mca.gov.in for the authentic information and no need to depend upon the fake media news. It has been updated on June 2 2020. As companies are taking lot of losses during this lockdown period, loss of name is also taken into consideration. So the expiry of the names reserved by companies of incorporation will be extended by Ministry of Corporate Affairs. Company Incorporation in Chennai gives you enough knowledge about the current affairs to the people who are willing to start the company.