The corporation offers investors many advantages. Shareholders have better access to capital – by raising share capital from existing and new investors. Shareholders can buy and sell their shares and the company’s value is indicated by its market capitalization, which is based on the share price. SA also provides the ability to make acquisitions more easily by offering shares to the shareholders of the target company and gives a company a more prestigious profile.
The SA is often the legal form chosen by large corporations, but it can also be used because the shares of this company form can be bearer shares and are therefore more easily transferable.
Procedure for establishing a joint stock company Here is the procedure for forming a public company, which is divided into 7 phases:
Phase 1: Identify shareholders and directors A minimum of 1 shareholder and 3 directors are required to register a public company. Shareholders can be individuals or companies, but only individuals can become directors of the SA.
Shareholders are the people who hold shares in a company, and directors of a company are responsible for managing corporate affairs and for compliance with the law under various statutes.
Stage 2: Identify the company’s location and capital It is important to have a correct address for where the company is based. A stock corporation should have a share capital of at least 30,000 euros.
Stage 3: Application for a company name Before proceeding with the incorporation process, a company name application must be submitted in order to obtain approval from the RCS.
Stage 4: Preparation of company registration documents Once the company name has been approved, the founding documents must be prepared by the promoters in the prescribed format.
Step 5: Submit company registration documents to the RCS Prepared company registration documents must be submitted to the RCS for company registration. Usually the company is registered in a few days.
Level 6: Company Registration and Certificate of Incorporation The RCS registers the company after properly examining the submitted documents and issues the deed of incorporation.
Step 7: filing the declaration of commencement of business activity A public company cannot commence business immediately unless the directors have filed a statement that all subscribers have paid subscription fees in this manner.
