What are Articles of Incorporation?
What do articles of incorporation mean?
Definition. The highest governing document in a corporation. Also known as the corporate charter, it generally includes the purpose of the corporation, the type and number of shares, and the process of electing a board of directors.
Why is the Articles of Incorporation so important?
Articles of incorporation are important documents because they serve as legal proof that your company is established in your state, and provide the state government with information about the main aspects of your business.
What is Articles of Incorporation in the Philippines?
The Articles of Incorporation is a document that is needed to form a corporation in the Philippines. A corporation is an artificial person created by law and should be registered with the Securities and Exchange Commission (“SEC”).
Where do you file Articles of Incorporation?
Corporations are allowed to enter, it must file these documents with the Secretary of State or company registrar where the company chooses to operate. Some states, such as Nevada and Delaware, attract a large number of firms seeking incorporation due to their favorable tax advantages.
What are the benefits of filing articles of incorporation?
The advantages of incorporating
- Owners benefit from limited liability.
- Ownership interests are easier to transfer.
- The life of the corporation can extend beyond that of the founders.
- Credibility is boosted in the eyes of partners.
- Financing and grants are easier to access.
- Tax rates are lower.
What should be included in the articles of incorporation?
What must be included in articles of incorporation?
- the corporation’s name and business address.
- the number of authorized shares and the par value (if any) of the shares.
- the name and address of the in-state registered agent.
- the names and addresses of its incorporators.
What are the documents required for incorporation of company?
Documents Required For Incorporation
- Memorandum of Association.
- Articles of Association.
- Prospectus Statement in lieu of prospectus is not requires in case of a private company.
- Copy of import agreements.
- Statutory declaration in Form I.
- Copy of Letter of Register indicating approval of name.
- Power of Attorney.
How do I process Articles of Incorporation?
Steps of the Company Incorporation Process
- Step 1: Reservation of Business Name with the Securities and Exchange Commission (SEC)
- Step 2: Submission of Documents to SEC.
- Step 3: Registration with Local Government Units (LGUs) of the location where you want to establish your business.
Who is responsible for the debts if a corporation fails?
Generally, individuals are considered separate from the corporations they control. So, if a corporation fails to pay a debt, the corporation itself is liable, and not its individual owners or operators. But the individual protection offered by a corporation is not unlimited.
How can articles of incorporation be amended?
Any corporation may for legitimate corporate purpose or purposes amend its articles of incorporation by a majority vote of its board of directors or trustees and the vote or written assent of two-thirds of its members if it be a non-stock corporation, or if it be a stock corporation, by the vote or written assent of …
How do you write Incorporated?
For this reason, corporation or LLC naming regulations may vary slightly in each state across the nation. However, most states require that the name of the corporation contain the word or phrase incorporated, Inc., corp.
Which three items are usually listed in the articles of partnership?
- The names of the parties in the partnership.
- The partnership’s principal place of business.
- The purpose of the partnership’s business.
- The terms of the partnership.
- When the partnership will begin and, if not infinite, when and how it will end.
- Each partner’s capital contribution.
How is a company incorporated?
The process of incorporation involves writing up a document known as the articles of incorporation and enumerating the firm’s shareholders. In a corporation, the assets and cash flows of the business entity are kept separate from those of the owners and investors, which is called limited liability.