Companies offer certain advantages when incorporated as compared with sole proprietorships or partnerships like independent corporate existence, limited liability and perpetual succession. In addition it facilitates transferable shares, separate property and professional management.The shareholders of a company have a limited liability for the debts of the business. The extent of their liability is the amount paid for their shares.
The formation of a private limited company offers business permanence and is committed to effective and responsible management. It gives its customers a sense of confidence and allows opening up new business opportunities.
Once you have registered a company with the Companies Registry, the company name is protected and no one can use the same name or even a name that is very similar.
Companies also have the advantage to lower corporate tax rates and to offset allowable and tax deductible expenses and reliefs against its profits.
A company’s existence will only cease if it is formally wound up, liquidated or by other order of the courts or Registrar of Companies.
