Investment ideas for a business organization

Business registration and  its general norms:

Business registration is scheduled with various companies act and several previous enactments are standing under the companies Act. The saved orders and rules are perfectly taking at the times of business commencement. The present Companies acts are tracing from the British government. At last the Companies act 1956 contains 658 sections and 13 schedules. Modifications, exceptions and adoptions are extending to the whole nation.  There is no clear precise meaning offering to the business and its registration.

Lord Justice Lindley defines Business Company as “A company means an association of many people who contribute money or money’s worth to a common stock and employs it for common purpose. The contribution of the money is denoted as capital of the business. The person contribute the money belong as members and the proportion of capital entitled as share”. An existing company must follow the rules and norms of the government.

Business registration with separate personality:

The separate personality or entity of a company signifies that a company is separated and distinct from its members. Business registration is only depends the sum of its total members. But a business company totally distinct from the members of the company. Body corporate cannot have a domicile in the same sense as an individual. By an analogy with a natural person the attributes of residence, domicile and nationality can be given. Central management and control actually abides govern the question where the real business of the company carried on.

A business company may carry on business in more places than one. In other words, if the control is divided the company may have more than one residence. A company characteristic includes with lot of elements. Business registration comes with broad classification. The general classification is company limited by shares, company limited by guarantee and unlimited companies.

General characteristics of business Company:

The following characteristics and classification of the company easily process the business registration without any complexity. A business company is taking as the status of artificial person functioning with the constitution of natural persons. The company should have a proper name it may sue and sued under government law. Own the property, have a banking account it the business company’s name. There is no separate existence allowing for the shareholders or the members of the company.

There is no separate existence allowing for the business company. The proper formality of company registration and other compliances are required one without any fail. It can act only through the natural persons. Shareholders, members, Agents, director and board of directors are the notable people in the formation of business. Shareholders are the owners of the business company. The money and property belong to the company but not for the shareholders.

Business registration with various types:

Business registration depends with three main categories. Primarily Companies limited by shares is around with liability of the member. The member’s liability contribute to its asset is limited to the amount if any unpaid on their shares is termed as “a company limited by shares”. Suppose the shares fully paid up then there will be no question of any further liability. It is fixed but not fluctuating liability. In the present scenario the trend of the company are mostly functioning under the companies limited by shares. A company limited by guarantee is the second category.

 The business company is limited by liability mentioning in the memorandum. It is taking its vital role at the time of business wind up. The members and the memorandum of the company contribute one with asset. Any limit not practicing under the term is directly mentioning the unlimited companies. Unlimited company may or may not have a share capital. Unlimited company is not an unincorporated company.

Advantages of business incorporation:

Business incorporation and formation of the companies are increases more of economics and business principles than to the law. Multi-national companies have more option to become huge public company, private company and other unincorporated company. As per the official status the companies limited by shares are rapidly increasing a lot. Limited liability is the latest option vitally using in the business registration. It comes with lot of striking opportunities. Comparatively it is better than unincorporated bodies.

In LLP registration the members are not personally liable and answerable to the creditors in the event of business failure. The creditors may sue the company but it does not affect the shareholders or other board members in the company. As contrast to the limited liability, the liability of the partners is not limited one. The liability of the partners very much upon the agreement entered into by them.

The scope of borrowing:

In the business registration will just initiate the business. The borrowing the money for further business proceeding is inevitable one. The scope of borrowing money is bright opportunity for the incorporate companies then the unincorporated company. It is an automatic process to improve the growth of the business. Certainly, the borrowing process deals with the asset. The charging of business is an ordinary process undertaking in the course of business improvisation. Floating of charge over the asset is as a security option in incorporated company. It is the major thing not affiliating to the unincorporated company.

Management and control is easy one from the one person company to society registration. Private companies are virtual form of partnership apart from the option of windup, ownership management and mergers and conversion is applicable as public company. The divorce of the company is also coming into this category. The conversion of public company requires the skilled and expertise level of team in every aspect.

Business registration with corporate status:

Business registration gives wide scope of money borrowing. The capital structure of the companies is now almost following the same stream. The broad level of company or corporate structure determines the value of the borrowing on the name of the company. The public company borrowing is huge one than other form of companies. This type of capital flexibility is enjoying by the incorporated company. Certainly, public company is the free bird to raise their own level of share capital. The risk elements are deciding through strong capital structure of the investors. Various nature and other forms of capital denominates the flexible structure of the corporate status.


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