Introduction to Company Formation
Company Formation is all about the process of founding (i.e., incorporating) a new business enterprise. It is also sometimes called company registration. Company Formation can also be defined as the procedures undertaken to register a business enterprise as a limited company and give it a legal status. In other words, a business becomes a distinct legal entity as soon as it is incorporating. Please note [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][therefore] that when a business enterprise is incorporated, it becomes an individual ‘person’ in the eyes of the law. Incorporated businesses are completely separate from their owners in terms of finances, liabilities, contractual agreements, and ownership of property and assets. The constitution of the Federal Republic of Nigeria does not view unincorporated businesses (such as sole traders) as distinct legal entities. Therefore, there is no separation between a sole trader business and its owner in terms of finances, assets and liabilities.
Procedure for the formation of a Company
During the formation of a Limited Liability Company, the following procedures must be followed-
- The first step is to get the promoters; they are individuals who conceive he idea of a company and undertake to fulfill all legal requirements of the venture…
Read more here- https://passnownow.com/lesson/companies-formation/
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