What is an incorporator of a company? If this is something that you have been searching for, you have reached the end of your search.
There are a number of things and designations that exist in the world of business. And when you start your corporation, the one person that you need the most is an incorporator. So if you are someone who wants to become an incorporator or are planning to hire an incorporator for your business, you will find this blog helpful.
Keep reading till the end to learn more…
What Is An Incorporator?
Well, everything in this world needs to be incorporated in order to exist legally. And that is the same for companies and corporations.
An incorporator helps to incorporate the business as a corporation. They are responsible for establishing the business. They are extremely important in the entire princess of business formation as they need to sign the paper and documents in order to do the business into a corporation.
You will not be able to see the incorporators in the office. Their job is to sign the articles and verify the documents at hand. Most of the time, their involvement ceases to exist after your business has been established as an incorporation. They are simply those stockholders who are involved in the process of forming the company.
Task Of An Incorporator
There are several things that the incorporators of a business do. First, but most importantly, they are needed to sign some of the crucial documents of registration. These documents include the Articles of Incorporation and the Action of Incorporator.
1. What Are Articles Of Incorporation?
The Articles Of Incorporation are some of the documents that form the legal body of the formation of the company. Most of the time, these contain the name of the firm or company, the amount of stock that will be issued, the type of stock that will be issued, the street address of the firm or company, and so on.
You can file for the articles of incorporation in order to gain favorable advantages over the taxes that have to be paid when your business is incorporated as a corporation. This step is extremely crucial for establishing the company as a corporation.
In other words, the Articles of Incorporation are the most important documents that are necessary to register the business or company as a corporation. These are also referred to as “certificates of incorporation” or the “corporate charter.” If you are doing business overseas like in Singapore, make sure your business has a registered business address Singapore.
2. What is the Action of Incorporator?
Next is the Action of Incorporator. This is yet another legal document that is signed by the Incorporator, which becomes effective right after filing the Articles of Incorporation. This is where the incorporator generally signs off from the task.
In other words, right after the execution of the Action of Incorporator, the company appoints a new Board of Directors (BoDs), and the Incorporator resigns from all the responsibilities of the company.
Criteria And Qualifications To Become An Incorporator
If you are someone who wants to become an incorporator, make sure that you meet these specific criteria:
- You have to be a minimum of eighteen years old (18 years)
- The person who is acting as an incorporator must have the legal authority to sign papers on behalf of the
How To Know If You Need An Incorporator?
If you are thinking about whether or not you need an incorporator for your business, then this part of the blog will be of help to you.
First, try to understand whether or not you need an incorporator before hiring someone for the role. There can be two specific reasons for you to have an incorporator for the business:
- If you want someone from the authority to register your company as a corporation.
- If you want to make sure that your business is able to conduct the business legally.
If these are the two things that you need for your company, then it is crucial for you to have a talk with an incorporator.
Another thing that you should keep in mind is the fact that you do not need to hire someone always to be an incorporator for your company. You can be an incorporator yourself. However, having an incorporator comes with a lot of benefits. First, and most important of them all is the fact that you will have peace of mind.
Frequently Asked Questions (FAQs):
As you have reached the end of this article, I hope you have found the answer to most of your search regarding the meaning of incorporator. Here are some of the other questions that people frequently ask about the incorporator of a company.
1. How Many Incorporators Do You Need When You Start A Corporation?
Ans: If you want to establish or register your company as a corporation, you need to have a minimum of three incorporators.
2. How Can You Remove Someone From A Corporation?
Ans: If you want to remove someone from the corporation, then you need to present a resolution to the Board of Directors of the company. You have to pass the resolution where all the reasons for removing the employee from service are mentioned.
3. Can You Remove An Incorporator?
Ans: You cannot remove an incorporator as they are the legal employees who establish your company as an incorporation. The incorporate resigns from the responsibilities of the company after signing the Action of Incorporation.
Wrapping It Up!
An incorporator of a business is the person that helps to establish the company as a corporation. They sign the legal documents and other documents related to the registration of the business as a corporation. They are very important in establishing the business as a corporation legally.
In case you want to know what is an incorporator and what their job roles are, I hope that this blog has been of help to you. If there are any other queries that are related to the same, feel free to write them down in the comment box below.
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