3. Incorporation

This chapter examines the various ways by which a company can be created and the different types of company that can be created. The process of creating a company is known as ‘incorporation’. There are four principal methods of incorporating a company: by royal charter; by Act of Parliament; by delegated authority; or by registration. The general rule is that the Companies Act 2006 (CA 2006) only applies to registered companies. However, in order to prevent unregistered companies being under-regulated and having an unfair advantage over registered companies, the CA 2006 provides that the Secretary of State may pass regulations that set out how the CA 2006 is applied to unregistered companies. There are a number of different company types that can suit a wide array of businesses. These include public and private companies. Companies can change their status by a process called re-registration.