Social object
The object of a company is the description of the activity to which it is devoted and which is mentioned in its statutes. It is essential that the corporate purpose be precisely defined and determined so that the company can achieve its objectives and develop its activities. It is important to know what activity is allowed and what activity is prohibited to the company. This helps to know what type of service or product can be offered and for what purpose.
Definition of the Social Purpose
The corporate purpose is a mandatory statement to be included in the statutes of a company which defines the field of activity in which it will carry out its activities.
Social Purpose Example
The corporate purpose of a company is a clause in its statutes which describes its main activity and its objectives. Articles of Association are the operating rules and principles of a business that determine its legal status. Thus, the corporate purpose is the first article of the statutes and the most important.
Possible objectives of a Social Object:
Operate a business
Managing real estate assets
Build, acquire, sell real estate
Make, buy, sell products
Organize fairs and events
.
When a company is created, it must determine a social object. The corporate purpose corresponds to the main activity of the company, and it is registered in the Kbis, the business register. It defines the limits of the company's activity and the activity to which it can devote its resources. It also defines the framework in which the company can evolve and manage its resources. It is important to choose the corporate purpose carefully, as it can influence the development of the company, but subsequent changes can be difficult to make.
Entrepreneurs can evolve in sectors related to the initial corporate purpose of their business, without changing the corporate purpose. However, to evolve in another sector, they must modify the registered corporate purpose at Kbis. Without a good understanding of the corporate purpose, and without proper planning, the company can be exposed to legal and financial risks. Therefore, the corporate purpose should be taken very seriously and it is important to consult a qualified lawyer or accountant before changing it.
