Many people are wondering why should they start a private limited liability company, such an enterprise often involves additional expenses and administrative work. In the case of an exclusive property company, these expenses are very nominal.
The determining factor to train such an enterprise is your financial responsibility as an individual. If you were the sole owner and professional flops for any reason, you are alone likely to erase all your debts. When you have big debts that you are unable to pay, you are exposed to the risk of personal bankruptcy. The formation of a limited company offers protection against such possibility.
In itself, a limited company being an entity is responsible for the actions it takes. The funds of such an undertaking are totally detached from those of the person who owns it. There may be one or more shareholders in limited private companies, although owners can not sell actions to the public or exchange them on the stock market. Only limited public companies can do so.
As long as you do not negotiate in a false or imprudent way, your risk of losing money as a director of the limited liability company is only in the extent of the money you may have invested in this company. Nevertheless, if you used bank loans against personal warranty, you will be held responsible for the payment of these loans.
Having such an enterprise can, to a certain extent, improve your credibility to potential customers.
How to start one?
You can engage the services of an agent, defender or accountant who would do for you and charge a small supplement. You will need to give some primary information to do the necessary and sign some papers. OTHER, you can visit the online companies online and incorporate your business.
You can also buy a ready-to-use name for a limited company. However, when you want to configure an absolutely fresh, it is mandatory for you to submit the statutes, the memorandum of articles, as well as an In01 renewable form at the company of companies.
A memorandum of association contains the details concerning the name of the company, the nature of its activities and the address of its head office. All directors must sign it in the presence of at least one witness. The company of companies sends all its letters, its notifications and reminders to the head office of the company. The statutes set out the rules and regulations for the management of the company.
Responsibilities of the company’s directors
A limited private company should essentially have a director, who can also hold the actions of the company. Persons accused of bankruptcy and those under sixteen can not be appointed as administrators.
It is no longer mandatory for these companies to use a corporate secretary, as the directors of a private limited liability company are responsible for the provision of the Chamber of Companies informed of any modification of the management or structure. their business.