Advantages And Disadvantages Of Private Limited Company

2 This is an OPEN book examination. You can only use your prescribed text book and the Corporations Act 2001. No other materials are allowed.

Limited Liability Company (LLC) combines the tax advantages of a partnership with the limited liability aspects of a corporation. LLC’s are governed by the Uniform Limited Liability Company Act (ULLCA). All members of the LLC enjoy limited liability unless there is serious misconduct is committed by said member(s), or a member fails to follow through on an obligation. All this should be outlined in your preformation contract. You will have more flexibility with taxation and options on how to manage the company. It would be advisable to also have an Operating Agreement. This will dictate how management will be hired and fired, division of profits, how to transfer interest in the event a member chooses to opt out or dies. What steps to take in the event of dissociation of a partner, and if it causes the dissolution of the LLC. Most importantly how the members vote in the LLC. The weight of the members vote is in accordance with the member’s capital

Per the Business License Application (registration form) opening a new business and hiring employees requires that the entity establish employment accounts (see Section 5. of attached application). Employment accounts cannot be established unless the entity plans to employ persons within the next 90 days. If accounts are established, employment tax returns will be required quarterly even if the entity has not hired an

Limited Company – Organisations set up to run your business. They must adhere to legislation such as The Companies Act 2006. This act sets out duties the appointed director holds. For example, to ‘act within your power as a company director’. These businesses need to be registered with Companies House and must submit any important

4. Government. You need to submit paperwork to form a business entity, you should probably get at least one or more licenses or license, you must be careful to avoid all

First of all the company must be register in Companies House and there is a fee need to be paid. Also there is some extra cost related running that kind of business like: financial information must be publicly available and copy of that statement must be send to Companies House. Partnership agreement should be drawn up setting out how it will run and LLP how profits will be shared.

A private limited company is owned privately by a small group of people such as a family. They are not allowed to offer shares (in the company) to the general public and can operate through just one director. A private limited company cannot trade its shares on the stock market.

The choice of legal status for setting up a new company can be complex and is dependant on various tax, commercial and legal considerations (Accountingweb, 2014).

Legal recognition of a corporation, even if the articles for incorporation are not properly filed. To be granted de facto corporation status, there must be: a relevant incorporation statute, a good faith attempt to comply with it, and evidence that the business is being run as corporation. (https://www.law.cornell.edu/wex/Limited_Liability)

To start any business proper authentication is necessary. Under the shop act you can register your business name that also helps you in your financial transaction and in case of any legal issues. After the registration you have to prepare

Although doctrine of separate legal entity has the greatest importance in company law, it contains weaknesses that could be arguable. Professor Kahn-Freund described the doctrine as “calamitous” because it arise many issues, such as “How is it possible to check the one-man company and other abuse of company law?” Separate legal entity is inadequate for complex problems .

A  limited  company  has  named  directors   whose  financial  liability  is  either  limited  by  guarantee  or  by  shares.  Setting  up  this  kind  of  organisation   involves  to  comply  additional  costs  and  time  in  order  to  comply  to  the  company  law.     ! Charitable  Status     Organisations  with  charitable  purposes  can  apply  for  charitable  status.  Benefits  include  tax  advantages   and  the  ability  to  receive  donations  from  charitable  trusts.

Setting up business in considered as a long, confusing and expensive process in Qatar. The entrepreneurs face the problem to get the right information and most of the time they get conflicting pieces of advice from different people. This piece is focused on registering a Limited Liability Company which is considered as the most common and de-facto form of company in Qatar. In most of the cases, limited liability companies are owned by Qatari nationals where their amount of share is around to 51% and owner could be one or multiple but must be Qatari nationals. There are quite a few companies that offer incorporation services, and they would take care of everything for the company and business. The article is not set up to be legal advice

Firstly, even though there are different types of partnership such as general, limited and limited liability partnership. This three different type has its advantages and disadvantages however we will be mainly focused on general partnership. One advantage of the general partnership is raising capital due to the nature of the business the partners will raise capital to start-up the business. Therefore more partners mean more capital can be put to the business, this allows the business to have more potential for growth and profitability. Another advantage is that a partnership is less complicated to form and run than a company they don’t have legal filing requirements, this means they don’t have to file accounts and documents with Companies House.

When Haili and John registered a proprietary company or form a partnerships, there are some legal rules and regulations attached to each of the type. To face those rules and regulations appropriately, a proper consideration is required by the each party.They have to know that a proprietary company is a smaller form of a public company when a partnerships is a form of organization when two or more people gather and do a business together (Pearce 2015). Consideration from the party comes from the management of the company and the willingness to use their personal debts. When Haili and John wants to be a director of Sparkle Pty Ltd, they can form a partnerships or a proprietary company. A proprietary company is a small company under the Corporations act 2001 (Cth), thus a partnership is only bind under The Partnership Act 1985. If Haili and John wants to manage the organization and be liable for the debt that arise from the organization, they can form a partnerships. Therefore, a proprietary company is separate legal entity and the amount of each party are liable for only the number of shares they own on the company (Pearce 2015). There is another form of partnership called limited partnerships that the members can have limited liability but cannot manage on the partnership (Pearce 2015). According to Seago and Horvitz (1980), a partnerships may have a characteristics of minimum 2 or more members and each party is a liable party if the partnerships goes