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An Introduction to Firm Formation
Any firm that's being newly incorporated entails large planning and has to go through numerous complicated processes and phases which can be responsible for building a sound business foundation. This entire process that includes its incorporation is called Company Formation or Company Registration.
The laws in the UK and a number of other international laws view the company that is being incorporated as a separate entity, completely different from the one that has started it or who owns it. Many various types of corporations are incorporated in the UK each day, like public limited company, private limited firm, unlimited company, limited liability partnership, limited partnership, royal charter, community interest company and lots of more. All these corporations should undergo the process of company formation.
In earlier days all the businesses had been formed only on paper, but as of late a lot of the firm formation process takes place electronically, via the Internet. While going via the paper process, the person who has incorporated the corporate has to submit various documents and a registration payment to the Registrar of Companies. The documents include a memorandum of affiliation, articles of affiliation, form 10 and type 12.
The electronic process differs with the paper process in just one way; no type 12(i.e., the statutory declaration) is required. To initiate digital firm formation, the user requires software that is compatible with the Firms House e-filing service and an account with the Firms House. If these are unavailable, then the company's owner can use the companies of a Firm Formation Agent.
Different firm formation agents adopt a different procedure to incorporate a company. The Agent must be recognised by the Companies House and must have passed the mixing testing phase. The Firms House has a list of all Firm Formation Agents. Now, a number of service providers have also come up online that supply new corporations company formation providers and business support.
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