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In one of my previous articles I have started the topic of companies and company formation. I would like to enlarge a little.

A company is formed upon the issuance of a certificate of incorporation by the appropriate governmental authority. A certificate of incorporation is issued upon the filing of the constitutional documents of the company, together with the statutory forms (forms required by law) and the payment of a filing fee. The ‘constitution’ of a company consists of two documents. One, the memorandum of association, states the objects of a company and the details of its authorized capital, otherwise known as the nominal capital. The second document, the articles of association (bylaws), contains provisions for the internal management of the company, for example, shareholders’ annual general meetings, or AGMs, and the extraordinary general meetings, the board of directors, corporate contracts and loans.


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