Company Formation and Common Characteristics of International Business Companies
An international company can be said to be a corporation formed to conduct business within a certain jurisdiction or locality. It is a business concern which is backed by law with all the necessary legalities to conduct business in an area. An international business concern has the luxury of keeping the identity of the company owners anonymous. The international business concern can also beconsidered as an offshore enterprise.
The laws and regulations guiding and regulating the setting up of these international businesses vary from place to place. Yet, there are some guiding principles which are constant in most places for the formation of international business companies.
The forming of these companies involves issues, such as:
1. There is a probationary place or position within the company for a local agent or several agents to be involved and be a part of the company and its running.
2. The international businesses can decide on their own to either appoint locals as officers or directors within their company, or they can other wise decide not to do so. It is their own prerogative what they decide to do, as it concerns the appointment of directors.
3. International businesses can allow for the issuance of shares. These shares can come in the bearer’s form or with the registered agents.
4. The international businesses are usually exempted from taxes on the premise and agreement that they do not engage in any local business so as not to stifle business for the locals. This tax exemption, however, does not include registration taxes or even annual fees which are paid to the agents which help in setting up and processing the registration papers for these companies.
To approve and register an international company, there are steps to be taken which cannot be skipped, jumped or avoided. These steps must be followed sequentially to ensure that no problem arises in the registration of this company. The steps include:
1. Company Name Approval- this is the first step in the process. Those starting up the company suggest various names for the company, and company registrars check the suitability and availability of the proposed name. If the proposed name is available, it can be penciled down for registration.
2. Registered Office- the business is expected to have a registered office address which could also act as their head office and headquarters. This is an important requirement for registration.
3. Shareholders- An international business has the right to have shareholders who have bought shares in the company. Buying shares means they carry out the burden of the company. If it makes profit they get dividends and if there is loss they also suffer loss of their investment.
4. Issued Share Capital- this refers to the number and type of shares which the company issues as approved by the government. This is important and an international company has to have the number of authorized shares which they can issue.
5. Memorandum and Articles- this is a short summation of all those involved in running a company to include the directors, workers, the business which they are doing, and information of the capital.
To conclude, international companies are set up outside the country of the origin of the company owners and there are many examples of such countries around.