Post Incorporation is a very important part of American corporate law and company forming system. There are over 15 important steps of post-incorporation. This post will discover why post-incorporation is important and what are some important steps of post-incorporation.
Let’s get familiar with Post-incorporation.
You formed your new company, but what happens next?
Post Incorporation is a series of steps and proceedings that need to be taken care of after you formed your company and finished the necessary incorporation steps. Post Incorporation is a very important part of American corporate law and company forming system. Because of its complicated nature and importance, it is always suggested that Post Incorporation should be done with specialized consultants. It should be remembered that as simple and easy incorporation is, post-incorporation is extremely detailed and complicated.
Why is Post Incorporation Important?
Unlike a public limited company which requires a trading certificate, a private limited company can commence business immediately. However, certain matters do still need to be dealt with. Every type of private corporation and startup in the scope of the American legal system needs to complete their Post Incorporation after they finished their Incorporation proceedings to further establish their corporate body. Any corporate work without the post-incorporation procedures will have many problems along the way and won’t be able to accomplish the simplest corporate tasks.
1. First Meeting
One of the first steps companies take after they are newly formed is the first board meeting and adopting a company by law.
In the early stages of your new company, the directors shall convene the first board meeting or pass the first board resolution relating to the “organization” of the company which should include:
- Adopting the Constitution that governs the internal operations of the company
- Adopting the use of a company seal
- Authorizing the issuance of shares and other types of securities
- Appointing officers
- Confirming the registered office address
- Confirming the first financial year-end
- Appointing an auditor, if required
- Making banking arrangements
- Taking care of any other business