Do You Need a Lawyer to Incorporate a Company?
When starting a small business, it can be difficult to ensure that every required task is completed. While you do not need a lawyer to incorporate a company, it is strongly recommended to hire one for this process. As experts in business law, the team at Linley Welwood knows how complicated and difficult it can be to navigate the various legal processes associated with starting a company. That is why we have compiled a list of reasons to hire a lawyer when incorporating a company to ensure that every element is accounted for and properly completed.
Learn why you need a lawyer for your small business.
4 Reasons to Hire a Lawyer When Incorporating a Company
Some of the main reasons to hire a business lawyer when incorporating a company include:
1. Reserving a Name
When you are incorporating a new company, you will first need to reserve a name and have it approved by BC Registries. Before submitting a name approval request, a business lawyer will review existing company names to determine if your chosen name is too similar or the same as the name of a company that already exists. The name must be in accordance with certain guidelines. A lawyer will also inform you if they think that the chosen name will not be approved by the Registrar so that you can select another name before submitting your request.
2. Preparing Articles
All incorporated companies are required to create a set of rules called “articles” for the company, shareholders, directors, and officers to follow. While the BC government does have a standard set of articles (Table 1 Articles) that a company can adopt, a lawyer can help you prepare articles that are specifically designed to meet your company’s unique needs.
3. Helping You Create a Corporate Share Structure
A business lawyer can help you determine which type of corporate share structure will work best for your business. Each business will often require different levels of share classes, each with their own purpose, special rights, and restrictions. An experienced lawyer can help you determine everything about your company’s share structure from voting rights to dividend entitlements.
4. Handling Post-Incorporation Documents
In addition to hiring a business lawyer to help you incorporate a company, you can also have your lawyer create and keep records for your company. This can contain important documents like the Certificate of Incorporation, Incorporation Application, Incorporation Agreement, Notice of Articles, and Articles of the company. A business lawyer can also prepare post-incorporation documents that are required by the Business Corporations Act, such as:
- Central Securities Register
- Consent to Act as Director for each director
- Minutes of directors
- Minutes of shareholders
- Register of Directors
- Share Certificates
To learn more about our business law solutions or to discuss the needs of your business, get in touch with the team at Linley Welwood. We can be reached through our online contact form and will be happy to answer any questions you may have regarding our services.