There are subtle differences between registration of a company and incorporation of the same. The act of incorporation usually refers to the creation of a distinct legal entity. This usually means that the corporation that is formed entitles the owner of the business from getting protection from the public who can sue the business for the personal assets that it possesses. Registration of a business on the other hand, does not provide protection of the assets of the company like the act of incorporation does. Usually a business is registered as they need to obtain a license to operate as per the regional commercial laws that prevail.
How incorporation is done
When a business needs to be incorporated the business owners usually need to file certain articles and pay fees for filing at the concerned department. For these actions it is best to employ legal consultants. Those who are experienced in corporate law are usually experts in these processes and are familiar with the legal requirements for the different businesses. The lawyer in UAE who helps a business with incorporation usually helps them to obtain legal recognition of the business and ensures that the business files its returns annually in order to show that the corporation is working legally and is in good standing.
The advantages of incorporation
Many companies seek legal consultants in order to get their business entity incorporated so that certain legal benefits can be obtained. Every region has differing corporate laws and the corporate attorneys are best placed to advise their clients on the kind of benefits that incorporation will provide for them. Usually, the corporate veil is one benefit that an incorporated entity enjoys. Hence, if the company is sued for selling a product that is defective, the corporation can be sued as per the assets of the company which can be included for payment of damages. However, if there is proof that fraud has been committed, the corporate veil can be pierced and the owner’s personal assets can be included as part of the damages as well.
How business registration is done
Those who need business licenses to operate in a region might need the intervention of an attorney as well in order to get the licensing done smoothly. When a business is incorporated there are separate steps to be followed in order to be registered as well. When a business is not registered, it does not have to be incorporated, but registration is a must.
Find corporate attorneys at your fingertips
When you are starting off a business and wish to cover all legal aspects, it is best to seek the assistance of corporate attorneys. There are legal services that specialize in this area and some attorneys handle specific companies or firms as well. As a result, getting the advice and assistance of the right genre of attorneys will ensure that one’s registration, incorporation and other legalities are completed in a smooth manner.