There is no legal requirement to retain a lawyer to incorporate a company.
Any person can incorporate a company, however, there are many benefits in utilizing a lawyer to help incorporate a company for you.
We have outlined the necessary requirements that it will take to incorporate a business and how a lawyer can assist.
Reserving a name for your company
The first step in incorporating a company is to reserve a name.
When submitting the name approval request, one can submit up to three names for approval.
How a lawyer can help: Before the name approval request is submitted, we will review the list of existing companies to determine if your name choices or similar names have already been taken. If we think that your name choices will not be approved by the Registrar, we will ask you to come up with other names. By doing so, we save you time and money.
Determining share structure
At Epstein & Associates, we will assist you in determining which type of share structure is most suitable for your business.
How a lawyer can help: For example, you may issue shares to investors of your company but you may not want those investors to participate in the operations of the company. In this situation, you would create classes of non-voting shares and issue such shares to the investors.
This type of insight can only come when using a lawyer.
Another great reason to use a lawyer is that we will create a ‘Records Book’ to retain all the required documentation for the incorporation. This includes the Certificate of Incorporation, Incorporation Application, Incorporation Agreement, Notice of Articles, and Articles of the company.
We will also prepare documents required by the Business Corporations Act to be kept at its records office.
These documents include:
- Central Securities Register
- Register of Directors / Consent to Act as Director for each director
- Share Certificates
- Minutes of shareholders approving the incorporation, waiving the appointment of an auditor, and appointing the first directors of the company
- Minutes of directors appointing officers, approving the location of the Registered and Records offices, approving the issuance of shares, determining the financial year-end, and other matters
How a lawyer can help: Determining what information you’ll need can be difficult. Using a lawyer can decrease the headache of figuring out what paperwork is needed to incorporate a business.
The main reason to have a lawyer assist you with incorporating your business is that lawyers ensure your company is set up properly. More importantly, that your legal interests are protected now and in the future. Getting a lawyer involved early in the life of your business will also be helpful as your business grows as you will have an advisor who is familiar with your company and your circumstances.
With all the legal matters taken care of that gives you more time to focus on managing your business. So don’t be afraid to speak to a lawyer; it will likely be the best call that you make for your business.