Advantages Of Company Formation In Uae

The United Arab Emirates comprises of seven independent regions known as Emirates. Each Emirate is unique in its own way and offers its own features and benefits for setting up a business.

We take a look at the various advantages associated with company formation in the UAE.

• Global trade hub

UAE practises a culture of open and free trade with its trading partners. The average tariff rate for goods entering UAE is 5%, but the country is packed with free zones that offer incentives like tax and duty exemptions. UAE's open border foreign labour policy is an added bonus for private sector companies, allowing them to recruit expatriate employees at internationally competitive wages.

• Strategic location of the countryLocated strategically on the new Southern Silk Road between Asia, Europe and Africa, the UAE enjoys excellent trading conditions. The various countries and regions that are in constant business relations with the UAE, and use it reach out to the world are:

China (uses UAE to reach Africa)India (uses UAE to reach out to the rest of the world)

Latin America (uses UAE to reach South Asia)

Western countries (uses UAE as a hub for the Middle East)

• Low import dutiesMost goods and items that are imported into the UAE enjoy extremely low import duties. To add to this, goods imported into free trade zones are completely exempt from import duties.

• 0% Corporate and Personal Taxes

Companies in Dubai or UAE's free zones are required to pay no corporate and personal taxes and enjoy 100% repatriation of profit and capital. This favourable tax framework was highlighted in a study called Paying Taxes 2013 performed by the World Bank, International Financial Corporation and Pricewaterhouse

Coopers.

• No double taxation

In order to avoid double taxation of foreign companies, the UAE has signed Double Taxation Agreements with many countries across the world.

• Strong and competitive economy

In a ranking of the Index of Economic Freedom 2013, prepared by the Heritage Foundation in partnership with the Wall Street Journal, the economy of UAE was ranked 3rd among 15 Arab countries and 28th among 185 nations worldwide. Thanks to UAE's transparent and favourable business climate and highly stable political climate, businesses are able to enjoy a highly dynamic and progressive environment.

• High level infrastructure

Rapid economic progress in the UAE has inspired a massive boost in the construction of residential, tourism and commercial facilities across the country. This is in addition to the on-going development of infrastructural facilities like the Al Maktoum International Airport, free trade zones, ports etc.

Points to Remember Before Setting Up a Business in UAE Freezone

Freezone Business Setup in UAE is a promising option for starting up a venture in Dubai. While the government has been encouraging on foreign investments ahead of the Dubai Expo 2020 and creating opportunities for entrepreneurs, it seems like the freezone company formation option is among the most preferred form of business setup in United Arab Emirates.

The UAE Ministry of Economy along with various UAE free zones, with collaboration have decided to discover partnership and strength mutual means of corporation. As known globally the UAE freezone company formation is a free economic area or an economic freezone jurisdiction, providing maximum benefits of business set up in the region - such as tax advantageous, complete ownership, repatriation of profits as well as on capital, no import and export charges, no custom duty, free transfer of funds, less monitoring or regulations, freedom on work module and so much more. Freezone business setup in UAE is nothing but a haven for every businessman.

Freezone Business Setup in UAE is amongst the swiftest procedures of incorporating a company in UAE and is normally not an expensive affair. Nevertheless, with all the good factor noted there are also few precautionary points a prospective entrepreneur must remember!

Listed below are the points to remember before setting up a Business in UAE Freezone:


• Chose Precisely:

UAE freezone offers various options with regards to jurisdiction, legal type, legal structure, the process of establishment, the numerous regions, their independent rules and regulations and so on. Before setting a company in UAE freezone, chose precisely which parasol is suited best for you and your company's requirements.

• Be Informed:

Having proper knowledge about the freezone company formation process and timely indication on the laws implemented is always a foremost advantage. A guidance from a company formation advisors of business setup consultant is the best option under this scenario - that allows you to focus on your business while formalities are taken care by the consultants. It also indicates you the changes in the pattern of business setup and assures you up-to-date services.

• Difference between FZE and FZCO:

Understanding the difference between a Freezone Establishment and a Freezone Company Formation is essential before freezone company formation. A Freezone Establishment is a company established by a sole entity and has a single shareholder, while a Freezone Company is actually a limited liability company are is bound by 2 or more shareholders. Even though both provide the same operational recompenses the major difference is in the share capital requirement.

LLC Incorporation and Formation

One of the most important aspects of starting a business is to choose the entity that offers the maximum benefit to your business. Limited Liability Companies are considered as the most commonly preferred business establishments of various fields. Limited liability is known for its legally recognized perpetual business entity. The incorporation of LLC is easy, simple and fast. LLC combines the flexibility of a partnership with the liability protection enjoyed by corporations. There are lots of advantages of forming an LLC instead of a corporation

Flexible taxation

One of the biggest benefit of forming an LLC is you have the option to choose how you are taxed. LLC's tax rate is completely dependent on the owner's income. Under the Corporate treatment option, if you have higher income you will be getting lower tax rates.

Protection of personal assets

By forming an LLC you can protect your personal assets from those of your company, if any lawsuit is brought against your company. Thus LLC makes your asset protected

No Double TaxationCorporations are subject to double taxation, where the corporation pays the taxes at the corporate level first and then on the income which are distributed as dividends. LLC are not subject to double taxation like Corporations. Business income is reported on your personal income tax return and axed once. You can approach a Business Tax preparation Company near you to know the procedure for filing return.

Low Audit Risk

Sole proprietorship faces more risk of IRS audit than LLC. If you have taken effort to form LLC, then you are in the business where there is less risk of IRS audit.

Business Flexibility

If you are running an LLC, then you have wide choice in how to handle the business. You can add members to your business easily without much formalities as in corporations. A Limited Liability Company is a flexible business structure which gives you a variety of options to manage your company.

Lease AssetsIf you are running an LLC, you can lease your personal assets to the company. This means you can run your LLC from your home office and show like the LLC leasing the office from you. By doing so you can write off business expense and improve your financial situation. For doing this you need a formal lease agreement.Forming LLC as the business structure is the best choice for an average entrepreneur. If you are going to run a LLC business, contact your nearest Small Business Tax Service Company, to run your business effectively.

Limited Liability Companies - LLC Basics

WHAT ARE LIMITED LIABILITY COMPANIES AND WHY CREATE ONE?

Our firm routinely encounters an employer having "LLC" after its name. What is the impact of this designation on our client's ability to collect his settlement, award, or judgment? We generally sue corporations, not individuals, for corporations are the named employers and have the necessary resources to compensate our clients for wrongful termination. But what happens when Corporations are "members" of a "Limited Liability Company?"A member of a "Limited Liability Company" or "LLC" has limited liability. A Corporate Member of an LLC has liability limited to the member's investment contribution to the LLC. This means that if Parent Company Inc. is a member of an LLC, Parent Company's exposure to pay the debts and liabilities of the LLC is limited to the investment of assets and capital Parent Company has placed with the LLC. An employee of the LLC cannot recover his damages for wrongful termination directly against the Parent Company.

But maybe the biggest reason large corporations use the LLC device is the "pass through" of LLC income without federal taxation to the LLC. The taxable income or losses of the LLC pass through the LLC to be separately reported on tax returns by the individual corporate "members." Of course, the distributions from the LLC will depend on the member contributions and the "Operating Agreement" of the LLC.

HOW LIMITED LIABILITY COMPANIES ARE CREATED.

Most people are familiar with the idea that Corporations are formed by filing "Articles of Incorporation." An LLC however is created by filing with the Secretary of State or Department of Corporations of a State a document known as "articles of organization" or sometimes called a "certificate of organization" or "certificate of formation".

LIMITED LIABILITY COMPANIES CONSISTING OF OTHER LIMITED LIABILITY COMPANIES

Most people are also familiar with the idea of a parent-subsidiary relation. That is, a parent corporation has stock ownership and some overlapping controls over a separate subsidiary corporation. An LLC can also set up this "parent-subsidiary" relationship of multiple LLC's engaged in a common enterprise. Why do so? The structure allows still additional layers of protection from liability. If one of the LLC members fails or incurs an overwhelming debt, the other LLC members are shielded from exposure except for whatever they contributed to the failed LLC member.

IMPLICATIONS FOR CREDITORS AND EMPLOYEES OF LIMITED LIABILITY COMPANIES

An LLC cannot by law issue stock. Its investment capital is derived from its members, and whatever private debt it can muster. But unless the LLC is maintained as a shell to defraud creditors, it is often sufficiently financed by its corporate members and other LLC participants to cover our client's claims.

An LLC ends when one of the members elects to leave the LLC. However, the operating agreement can provide for a buy-out of the departing member's interest, and the continuation of the LLC. Without such a contingency in the Operating Agreement, a new LLC must be formed. The reality is that your target employer-defendant may dissolve if one of the LLC members leaves. Diligent attorneys suing an LLC will obtain a copy of the Operating Agreement to identify all members and to be assured of continued operations.

Preparing for the Initial Consultation With Your Business Attorney

Starting a business is a serious endeavor that opens you up to many new legal considerations. Be prepared for your initial meeting with an attorney by learning about key commercial-entity concepts.Sole ProprietorshipYou are a solo practitioner who's been baking and giving away cakes for years. Now people are offering you money to bake more. In this situation, if you are simply sticking to making cakes in your home kitchen without much fanfare, it may not be necessary to establish a formal entity.

Typical Sole Proprietors- Small business- Operating with minimal frills- Comfortable taking on personal financial riskPartnership

You've spent a few years as a sole proprietor. Orders have steadily streamed in, and you've hired additional workers. After borrowing your neighbor's van to deliver a wedding cake for your first out-of-state customer, you realize that this relationship could help grow your operations. This might be the time to set up a partnership. Here you and one or more individuals will agree to share ownership of the business. The proportional share of ownership is decided by the partners. Depending on your state, partners may equally share risk or proportionally share risk according to their agreement. Although it's tempting to rely on a friendly handshake to seal the deal, with so many considerations, it's important that both parties have an attorney review their agreement.

Typical Partnerships- Individuals who've chosen partners they're likely to work well with both professionally and personally- Colleagues who have invested both time and capital into the business- Partners who are willing to be personally open to liability

Limited Liability Company

The cake-selling partnership has been booming, and you and your neighbor agree that it is time to set up a storefront. While the partnership worked when you were in your own kitchen, setting up a commercial kitchen requires permits, contractors, and licenses. Above all, you must purchase insurance. This has you reconsidering if you want to remain personally liable. What if someone were to slip on some icing and sue? Setting up a limited liability company will create a separation between you the person and the commercial entity you operate. In other words, if something bad were to happen, the business would be liable, not you and your neighbor.

Typical Limited Liability Companies- Operate in an industry susceptible to lawsuits- Can be any size- Require less personal financial investment

Corporation

It's twenty years down the road, and you are a Cake Don. In addition to making cakes for all occasions, you have an online baking show, a podcast, and a baking-ware line. All of this is fantastic and you're a millionaire, but your hands ache and you wonder what will happen when you want to slow down. Your family steps in and asks to be involved, pushing you to set up a corporation. This form of business is run by a board of directors who, depending on the type of corporation, may or may not own shares in the company. If you would like to ensure the cake company's long-term success, having a corporate board available to help make decisions is key.

Typical Corporation- Has a larger budget- Can be for-profit or not-for-profit- Must abide by strict regulations if the corporation becomes publicMake sure to work with an attorney to ensure you are maintaining compliance while running a thriving business, no matter the type.

DCAA Indirect Costs Preparation By The Experts

The Defense Contract Audit Agency or the DCAA is a monitoring body that performs a strict audit before awarding contracts to any civil body. They do not conduct the audits by themselves but are asked to do so, on behalf of different military and even some civil wings. The strict audit is done to ensure that the taxpayer's money are well spent. Thus, there are several clauses and sub-clauses to abide by to pass the audit and secure the government contract. For this, you have to prepare an account that is DCAA compliant.

Separating the indirect costs

The prime task is to determine if your company accounts are adequate in accordance with the DCAA stipulations especially concerning the DCAA indirect costs accounts. The indirect costs are rates that can be quantified in any contract. The direct cost comprises of expenditures like the cost of materials, worker wages for the project in question, expenditures for the sub-contractors and the like. The indirect costs on the other hand are specified by the FAR and have to be explained properly.

Categorizing the costs

All recognized DCAA indirect costs can be more or less categorized in three groups the benefits of employees, the total overhead costs, and the general administrative costs. Employee benefits like those of the health, pension plans, paid leave allowances have to be clearly maintained in records so that there is no discrepancy when the audit comes. This is usually done by way of good time-keeping that can be either manual or electronic. Such records must have a consistency for at least a period of time and not made overnight for the audit.

Covering the areas of operations

Concerning the overhead costs, the records have to be in existence at the time when money was actually spent for the purpose. They may also include sections like research and development, shared facility costs and those of the electricity and the heating systems too. Costs that are associated with the management of the business like the office space, the salaries of the workers and the management engaged in one or even multiple projects and the like.

Proper projection of the accountsThe way you maintain your accounts of the indirect costs will largely depend on the type of business that you are engaged in and also the size of your business. You will have to submit all such accounts within six months of the end of the fiscal year. It is not in the capacity of regularly qualified accountants to prepare the needful as the specifications are largely different in certain areas. The best way to avoid being penalized is to take the help of the professional accountants that not only have experience in preparing these accounts but have once served for the DCAA.

Seven Legal Tips To Start A Business

. Ensure your business name is available:

You need to invest money as well as effort into starting a new business. Before doing so, you should ensure that the title is available for registration. It should not happen that you do everything and suddenly find that someone else has already taken the title. This will prove advantageous to you while you register for your trademark.

You can check the availability of a title in many ways. You can conduct a search if any firm has applied for a trademark registration in the same name. You can also conduct an extensive search to verify the existence of the same name elsewhere in the country. Your business lawyer can do the search for you.

2. Choose the appropriate legal structure:

There are various structures for a business entity. There can be sole proprietorship concerns, partnership firms, limited liability companies (LLC), or even corporations. You should choose the appropriate structure for your business enterprise. The sole proprietorship and the partnership firms are the easiest to form. They do not require any formal registration as such. However, these concerns cannot offer any protection to the owner against any liability. Hence, you can opt to form a LLC. You get protection against any liability in such kinds of concerns. This is easier to form than a corporation is. You can consult your legal advisor or business law firm.

3. It is better to register your business name:

You should register your business name with the state authorities. This gives it an identity and people get to know whom they are dealing with. In case you wish to form an LLC, it requires an automatic registration. However, in case you form a sole proprietorship or a partnership, you can ask your business lawyer to assist you in registering the name with the authorities.

This procedure ensures you legality to operate your business in your name. It can also ensure that no one else takes up this name in the future.

4. Do not forget to obtain a Federal ID Tax number:

Every individual in the United States has a Social Security number. Similarly, a tax ID number is necessary for every business entity. They also call it the Employer Identification Number. You can apply for a Tax ID number online with the IRS. Your legal advisor can assist you in this regard. This number is mandatory in case you wish to recruit any employees. This will ensure that you need not use your social security number for business transactions.

5. Opening a business bank account is mandatory:

You have completed your registration. You have also obtained your Tax ID number. You can now proceed with the opening of a business bank account in the name of the firm. You will be able to make and receive payments through this account. You need not use your personal account for official purposes. This can also be useful for tax calculations later on.

6. Obtain the requisite local permits:

You may have to obtain certain local permits depending upon the business you do. Your business law firm or your business lawyer will be able to guide you better in this regard. You may require local business licenses such as a sales tax license, health department permit and so on. You can also contact the local authorities or visit the necessary websites to learn more about obtaining the requisite permits and licenses.

7. Familiarize yourself with employer laws and responsibilities:

You will have to employ many persons in your firm. You should be fully aware of the employer laws as well as responsibilities. There are many legal obligations to observe while hiring employees. You may require knowing about pay roll administration, tax rules, waging per hour requirements and so on. You can consult your legal advisor about the same. Your business law firm will be able to explain to you the Occupational Safety and Health Administration (OSHA) regulations. You should be aware of your obligations before you go on with the job of recruiting people.

Ready to Set Up a Company in Qatar? Here Are the Steps!

Setting up a new company in Qatar, the world's most successful business arena is not as simple as one may think. Company formation requires a list of very important steps that cannot be avoided. For one that is unfamiliar with the market there, it can be challenging to say the least.

Many choose to hire a company consultant to help with company formation in this desirable market. Regardless, below are the steps listed out. Take a look and consider how a consultant can help.

Step One: Company Name

A completely unique company name must be chosen as the first step to company formation. If the name is already registered at the MBT or Ministry of Business and Trade it cannot be used. An in person visit to the Commercial Registration area of the MBT is required in order to do a search and then register the name.

Step Two: Open a Temporary Bank Account

Once a letter is obtained from the MBT, one can take this letter that is addressed to a bank in Qatar and open an account with the amount of capital approved by the MBT. There are no fees associated with this step.

Step Three: Approval for Articles of Association

The business owner must obtain approval for the Articles of Association. This also comes from the Ministry of Business and Trade. These meet the standards set forth by MBT and include the name of the company, home address, and objectives.

Further they contain the fixed term of duration, capital amount, any restrictions upon transfer of shares, shareholder names, capital structure, profit and loss distribution plans, and names of management. Company formation in Qatar depends on this step and the previous three, all of which take at least a day each.

Step Four: Deposit Required Capital

The business professional must then deposit the capital as set forth in the agreement at the bank they've opened the account with. The bank must give them a letter as proof that the deposit was made. The bank will need the letter from MBT listed in the second stop, and copies of the shareholders' ID's. This step can take up to a week.

Step Five: Obtain Other Necessary Documents

There may be several other documents necessary for commercial business registration. Tourism and engineering sectors require extra documents, as well as others. The Industrial Project Licence from the Ministry of Energy and Industry is necessary for all industrial businesses. These are just a few examples.

Step Six: Approval for Incorporation

These documents are obtained from the Ministry and are easily obtained by a law office. The Articles of Association are an example,this step can be skipped by establishments as it is not required.

The articles are then authenticated by the Ministry of Justice which should take no more than one day.

Step Eight: Commercial Registration

• There are a variety of documents needed for this step at the Commercial Registry of the MBT. The step takes at least a day. Owners will need:

• The application signed by the GM and owner for the company.

• ID card copies for the general manager, owners, shareholders and partners if any.

• The deposit bank letter from step four

• Receipt for proof of payment for review of Articles of Association from the MBT

• A signed declaration form by Qatari shareholder (if necessary)

• Approval of the new company's name

Company formation then depends on registration with the Qatari Chamber of Commerce and Industry. The fee for this is 560 QR to 5510 QR in 2015, or dependent upon the amount of capital and company objectives. The final steps include the company seal, trade license and signage license. So as anyone can see, this process will take at least two weeks. Obtaining a consultant in Qatar that is skilled in company formation can save anyone a huge headache.

Both international and local companies can get assistance and thrive with consulting services from DBC or Doha Business Consulting. They have extensive knowledge with the Qatari market and are excited to help companies identify problems and create a trade mission through innovative and cost effective solutions. They approach every challenge with confidence, knowing that they will make a difference in a company's success. With years of experience they can provide a business with the necessary resources to enter the market strongly and continue to grow. With a long list of current clients and more being added every day, any business can feel confident they'll see results when using their services

Set Up A Company in Cyprus

Cyprus is among the most significant business and investment centres in the EU and internationally. The considerable tax incentives together with the limited bureaucratic procedures attract entrepreneurs and investors from all over the world. Another major advantage of establishing a company in Cyprus is that the island maintains the financial privileges of a tax heaven destination while it follows all the relevant EU regulations. Furthermore, Cyprus benefits from all EU treaties, regulations, directives and freedom in capital movement as a full EU member-state.

The most popular choices of creating a company in Cyprus are tailor made and off the shelf company. A tailor made company is created from scratch. An off the shelf company refers to an existing company that has been adapted for particular purposes.

The main advantages of setting up a company in Cyprus:   

A business-friendly tax regime and double taxation agreement with more than 40 countries: Cyprus is a reliable jurisdiction and it is on the white list of OECD. Furthermore, Cyprus has adopted International Financial Reporting Standards (IFRS). As it has been mentioned before, Cyprus offers considerable tax incentives. The corporate tax rate in Cyprus is 12.5%, one of the lowest in the EU. Apart from the favourable tax regime, intercompany dividends are not imposed on any taxation. Moreover, when a Cyprus company allocates shares to subsidiaries or one of the associated companies there is no tax liability. Cyprus has established double taxation treaties with 45 countries. Double taxation agreements denote that taxes on capital gains, royalties, interests and dividends are not paid in some cases.   

Limited bureaucratic procedures: Incorporating a company in Cyprus is not complicated. Before proceeding with the incorporation process, the name of the company must be approved by the Registrar of Companies so that to ensure that there are no companies with a similar name.   

Open a bank account for a Cyprus company: Opening a bank account for a Cyprus company is not complicated and it can be done almost immediately. The presence of company's directors is not necessary. In case you want to open a bank account remotely then notarisation and legislation of documents of directors and shareholders of a Cyprus company are necessary.

Procedures and Documentation:

In Cyprus, a company is incorporated within approximately 10-18 business days. As it has been noted, the name of the company must be approved by the Registrar of Companies. This will take between 3- 6 business days. The following step is to register the company. The whole registration procedure will take between 5-8 business days. Note that in case the documents are not in English, then they should be translated, certified and apostilled.

NECESSARY DOCUMENTS:   

Each shareholder is obliged to submit a copy of his or her passport. Photographs, personal details and signatures must be visible.   

A document that indicates the residential address of each shareholder. Note that P.O. Boxes are not accepted as residential addresses.   

If the corporate body is a shareholder in the company, then it should be submitted a copy of the incorporation certificate and a copy of the certificate indicating the exact location of the company's registered office. An oversea company can be a shareholder.   

Following the Cyprus Law, the company needs minimum one Director and a Company Secretary. The directors can be either natural persons or corporate entities.   

Each officer of the company must submit the following documents: A copy of the passport. Photograph, personal details and signature must be visible. A document that indicates the residential address of each officer. As, it has been clarified before, P.O. Box addresses are not accepted as residential addresses.

The Directors must submit information about their professions. Moreover, the Directors should provide information whether they have been appointed as Directors in other companies. In this case, a simple "YES" or "NO" is enough.   

In case the officers of the company is another corporate entity, then each entity should submit a copy of the incorporation certificate and a copy of the certificate that indicates the exact location of company's premises.

Starting a Cleaning Service - Legal Structure

At this point you have decided to start a cleaning service, but you don't know what your business structure should be - a sole proprietor, partnership, LLC, or Corporation. The information is confusing, there is paperwork to be filed, and it costs a lot of money to get advise. Well, not really, I am here for you.

Most cleaning services start out as sole proprietorship. For some this works, but I strongly caution against this. Before I explain why, you need to know the differences between different structures.

Sole proprietorship is the simplest form of business that directly ties the owner to the same without providing any protection to his/her assets by being a different entity. Basically, the owner is solely responsible for all debt, benefits from all income, and the business is he or she for any legal purposes.

A corporation is an entity for itself and the owner becomes a shareholder of the same. In essence, this means that the corporation itself is liable without the owner being subject to any liability through his personal assets. The actions and debts of the business are all on the business and therefore do not affect owners private assets. Special taxation rules apply as well as both entities including the owner and the corporations have to pay separate taxes.

A Limited Liability Company (LLC) is a mix between the two. This legal structure is maintained by the states and not the federal government, so all income flows through to the owners, however, any liability is limited to the company only and owners personal assets and owners as an entity are protected.

For a cleaning service, I strongly recommend the LLC structure. You will work in expensive homes, offices with confidential information, and businesses with proprietary technologies and processes. If something happens due to your mistake or the mistake of your employees, you want to make sure your personal assets are protected and off-limits in case of a law suit.

Formation of an LLC can appear to be a daunting task, but services such as Legal

Zoom and others offer to complete the entire process for you for as little as $150. I would highly recommend using such a service as they do a great job at an affordable price and ensure that all is right. Please be aware that before you can form an LLC, you need to obtain a FEIN number from the IRS. Many websites will try to charge you upwards of $50 for this, but you can easily obtain this number online from the IRS online system in less than five minutes. As an alternative many states offer a free formation service online or free forms for you to complete yourself.

Once this step is completed, you will have the necessary paperwork to complete many other tasks such as opening a business checking account.

Start an Offshore Company in Hong Kong

Requirements for opening a company

An offshore company opened in Hong Kong must appoint at least one director but their number may be unlimited. It's not mandatory for them to be Hong Kong residents.

Minimum one shareholder is required and maximum fifty. The shareholders may be natural persons or companies.

The company created in Hong Kong must also appoint a local individual or corporate resident to have the role of company's secretary.

Procedure for starting your business in Hong Kong

The foreign investors have two choices in incorporating an offshore company in Hong Kong. They may register a new company or buy an already registered one.

The companies that are only registered but do not pose any liabilities or assets are called shelf companies and may be purchased by investors that have no time to wait until a new company is incorporated. After buying it, the investors may invest directors and secretary of the company, increase the share capital and change the name and the registered address.

The investors that wish to register a new business must know a few facts. First, the company's desired name must be checked at the Companies Registry. If it's not a duplicate or too much alike with another one, it can be reserved.

After that, the following documents must be submitted to the Registry:

• the registration application form,

• the Memorandum of Association and Articles of Incorporation,

• the passport copy of the founders,

• bank reference letter for non-resident shareholders or directors,

• copy of Hong Kong identity card for Hong Kong resident shareholders or directors and copy of parent company registration

• documents (only for corporate shareholders).

After 14 days from registration, the offshore company established must also deposit the following documents:

• notification regarding the registered address,

• the decision of appointing the director(s) and the secretary and their consent to act in that position

• other documents requested by the Business Registration Office, depending on the nature of the business.

A bank account must be opened and within a month since the registration, the company must be registered at the Inland Revenue Department.

Special requirements for operating a business

Operating a trading company, a retail shop, a travel agency, a restaurant, an employment agency, an education business, a financial services agency, an event management agency are activities that requires receiving a license, so it is important to apply for it at the competent authorities. The type and number of required permits and licenses vary greatly from business to business. We recommend taking the help of a qualified lawyer or business consultant in Hong Kong for professional advice, which will certainly help you rest assured you start your business proper and in the legal framework of this city-state.

Only if the above steps are completed, the foreign investors may start operating business and enjoy the benefits of having an offshore company opened in Hong Kong.

By-Laws Vs Articles of Incorporation

Engineers make slant sheets as inspiration for each new frame line. They serve as a point of view to recall on while making the line. Have youngsters evacuated pictures that persuade them and paste them onto a touch of notification board. Photos can be anything from scenes with magnificent tints, to people that they acknowledge and screen shots from their most cherished films. They can similarly fuse words on their inspiration board. The standing rules and articles of joining fill totally diverse needs. The articles of consolidation are the establishing records of an organization. Like a constitution, they are the reports that bring the organization into presence. The standing rules are the interior laws of the organization. They produce results once the company is made, and control how the corporate administration is to work. In reasonable terms, the standing rules will impact the everyday working of corporate administration.

As the establishing archives of a partnership, the articles of consolidation must be documented with the state in which the business is fused. Most states don't oblige ordinances to be recorded with the state. Standing rules have no impact outside the company, however can be acquainted into a claim with exhibit corporate administration was or was not reliable with the pertinent local laws. The accurate prerequisites for articles of joining and standing rules are dictated by the laws of the state in which a business is fused. Despite the fact that the structure and substance is for the most part the same, there are contrasts. A few states, for instance, require certain dialect to be embedded verbatim into the articles. Along these lines, it's essential to check your state's laws before drafting either articles of consolidation or ordinances. Generally the secretary of state's site has points of interest on these necessity.

Articles of consolidation and standing rules are such normal archives that it's not important to enlist a lawyer to make them. It's not hard to discover an assortment of joining units in retail locations and online to help with the procedure. There are even sites that will naturally create the archives in view of your responses to meeting style questions. Indeed, even these items are not entirely fundamental since there are free structures accessible on the web. Most states have deliberately made the procedure of drafting these records as simple as would be prudent and generally offer state-particular structures or rules for nothing out of pocket.

Simple Tips for Determining If Commercial Litigation Assistance Is Necessary for Your Business

Searching out commercial litigation assistance is an intimidating process, but if you follow these tips, you will be able to find the appropriate lawyer for your unique legal situation.Understand What A Commercial Lawyer Can Do For Your Unique Business

Law firms can help businesses with a whole suite of cases ranging from landlord-tenant litigation to change of ownership to employment and consulting agreements. If you are unsure of how to proceed with a confusing legal matter, schedule an appointment with your lawyer. It is always best to consult with an attorney before proceeding with legal action because each case is unique and needs attention from an expert. Many legal firms offer a free 30-minute consultation where you will learn all your options.

Law Firms Will Assist You In Choosing What Type Of Business To Form

Attorneys have the ability to aid you in choosing your business formation when you are a new company, store, or restaurant. For example, there are multiple businesses to file as: corporations, LLPs, LLCs, sole proprietorships, joint ventures, and partnerships. Law firms will walk you through the meaning of each type and assist in choosing which category fits your business description. It is imperative to understand that each type has a different rule when it comes to distribution of profits, documentation, and asset protection.

What To Do If Your Business Has Been Sued

First of all, do not take action on your own or answer any legal questions about the suit. You lawyer will assist you in contacting your insurance in regards to the claim. It is imperative to contact a commercial attorney who will research your options and consider the facts and situation. They will create a defense, assess liability, and decide to settle or move forward with the litigation. Remember you do not have to take on a lawsuit alone.

How To Prepare For Your First Meeting With Your Attorney

It is important that your commercial litigation specialist understands your situation from all angles. Most legal firms prefer to have all documents and records associated with your case to become intimately familiar with the history of your case and business. Said documents might include: formation documents, a business plan, organizational charts, meeting minutes and records, contracts, a vendor list, tax records and the current year's tax return, and financial statements including balance sheets and income statements.

If the above information is a lot to digest, or you are convinced your business is in need of an attorney, simply contact your local commercial litigation specialist and schedule a free consultation. Law firms are eager to assist and are widely experienced in a myriad of legal matters, so even your unique case has likely been encountered before. Remember you do not have to tackle these legal issues alone.

4 Reasons to Hire Business Dispute Attorneys

Owning a company is a lot of responsibility. Hard as you might try, there is no way to make everyone happy all of the time. Disagreements happen and, unfortunately, there will be times when you must have legal assistance. While it might be your first instinct to handle everything alone, there are several reasons you should hire business dispute attorneys.

1. Protect Your Company's Interest

It is in your company's best interest to always look professional. You don't want to offend a customer or client accidentally because of something one of your employees has done. In these situations, where something has happened to give your business a black eye, your business dispute lawyer can help smooth things over. He can protect the way your company is perceived by handling the problem professionally and quietly. In many instances, he can meet the complaint head on and settle it without resorting to litigation.

2. Access to Legal Resources

Having legal counsel is important when you run a company. These specialized lawyers understand what kinds of pressures you are going through as an owner, as many of them are business owners too, running their own firms. It is their job to help you make the most of each situation by being goal-oriented. In addition to all of the experience they have, they also have access to other lawyers, paralegals, and legal texts that offer a great deal of assistance to your company.

3. Specialized in Handling Disputes

Business dispute attorneys focus all their energy on disagreements that arise for your company. These specialized lawyers are familiar with complaints such as injury while on the property, breach of contract, or even patent disputes. They can also handle internal disagreements such as an employee's lawsuit or sexual harassment cases.

4. Knowing When to Pursue Litigation

These attorneys have a finely tuned sensor that tells them when to pursue litigation and when not to. This experience can save you time and money, as not everything has to be taken to court. Sometimes disagreements can be settled by arbitration without involving the courts. For example, if you are being sued by a customer over an injury they suffered while on your property, your representative can settle this problem during arbitration by coming to terms on a fair monetary settlement. However, if your company is being sued over a patent infringement, and there was no such infringement, you may be better suited to take this dispute to court.

Of course, the question sometimes isn't should you hire a lawyer but when to hire one. It is always a good idea to have a firm picked out to represent your company in your time of need. If you own a small business, you might want to have a group to turn to as needed, but you might not necessarily plan to keep them on retainer. Do your research before a problem arises to find the best business dispute attorneys for your enterprise. This way if you need legal assistance, you know who to contact to settle the matter.However, if you own a larger corporation, you would benefit by having a firm on retainer to handle any legal discrepancies that arise.

Professional Help For Offshore Company Set Up

Offshore company formation marks the success and growth of a business. However, it is important to understand the rules of the foreign locale as the new setup has to be formed on an international destination outside the country of residence. For businesses setting hold in different countries, keeping a watch on the rules, regulations and policies is an intricate practice. This should not be a limiting factor as many service providers out there are ready to offer help to business personnel with necessary guidance and important advice to get started. With these services to help, it becomes easier to achieve the international business objectives.

What do these experts do?

The objective of the offshore consulting services is always inclined towards the business needs of their clients. They hold rich industry experience in offshore business development consultation in multiple areas including trusts, company formation, bank accounts, yacht registration, gambling licenses among others in multiple jurisdictions. Their services are also important in the management and regulation of financial aspects of any business.

The professional team has rich knowledge and expertise required for offshore company setup legally. Aside from company set-up, they also offer help in other affairs including offshore asset management, collaboration with attorneys, trustees, notaries to prepare their clients for the legal practices for their security in the foreign national. The offshore consultants work with a team of professionals having knowledge in various fields, so they are able to build a network that is of great help in the offshore company foundation.

Hiring these consultants has many advantagesInnumerable benefits and opportunities knock the door when hiring these services. The corporate consultants that help in offshore company setup provide one-stop solution to every problem that business owners face when it comes to forming an international office.

They offer valuable consultation on:   

Tax optimization opportunities   

Offshore business setup   

Flat rate taxation   

Asset protection   

Successful maintenance of corporate work culture   

Finding a site for the office

All these advantages provide a solid reason to seek these services when trying to set up a business to an international destination. With all the important details taken care of by them, clients have very little to worry about when it comes to setting an offshore organization. Therefore, these services are extremely valuable when it is about starting a new venture by entering into international trade. Moreover, benefits come only when an experienced and reputed consultant is chosen for help.

What's the Difference Between an LLC and an LP?

Decades ago, business owners had few options aside from sole proprietorships, partnerships, and corporations. Today, limited partnerships (LPs) and limited liability companies (LLCs) are two of the most popular entities for small businesses. These entities have many of the same advantages, including flexibility, pass through taxation, limited liability protection, and greater control of management compared to a corporation. Both are also treated like a general partnership by the IRS for tax purposes. For these reasons, it's easy to confuse the two. Here's what you should know about the difference between an LP and an LLC.

Limited Liability Companies

A limited liability company, or LLC, is actually a hybrid business entity that combines the best features of a sole proprietorship, partnership, and corporation. Every owner, or member, enjoys limited liability protection similar to that of a corporation shareholder although an LLC is far more flexible. Unlike a corporation, an LLC does not have strict formalities like the requirement to produce annual reports or hold director meetings.

An LLC is a pass-through tax entity. This means each member's share of business losses and profits are reported on the member's personal income tax return. An important distinction with forming an LLC is members can choose to distribute profits any way they like without considering each member's contribution to the company.

Limited Partnerships

Limited partnerships have at least one limited partner and at least one general partner. The general partner is the one who participates in management with 100% liability for any obligations of the business while limited partners cannot participate in the business management but have no liability for the company's obligations beyond their financial contribution to the business.

The benefit of an LP is it's an attractive entity for passive investors. Because limited partners have such strong protection, general partners can more easily raise money without worrying about outside investors becoming involved in the business' management.

Which is the Right Choice?

There are advantages with each option. Both LLC owners and limited partners of an LP enjoy limited liability protection, but limited partners will lose this protection if they choose to actively participate in business management. This makes a limited liability company a more flexible business structure in terms of management.

While both are treated as a pass-through tax entity, the LLC does come out ahead in this area because LLC members can claim tax losses in excess of their capital investment in the business, unlike limited partners.

There are a few advantages to an LP. Not all states have the same tax treatment of limited liability companies as some states limit the types of businesses that can form an LLC while others tax LLCs like corporations. Limited partnerships can also come with additional tax deductions for employees.

Both business entities offer many of the same benefits that are important to any small business, including flexibility and limited liability protection. Despite their similarities, there are distinct differences between the two, however, which means it's important to consult with an expert such as a corporate services company or an attorney before you make a choice.

Legal Checklist for Startups

The beginning stages of a business can be a hectic time, and it's easy to overlook the legal aspects of the startup process. However, in order to comply with local and national laws, it's important that a startup follow the proper legal guidelines. The following checklist will help entrepreneurs know what steps to take to avoid being overwhelmed.

1. Decide Whether to Form a Corporation or a Partnership

A corporation is an entity where only one person makes decisions about the future of the company. A partnership is an entity which involves two or more people in the decision-making process. Which of the two entities you create will be based on the expectations and goals for the company. You'll also need to register a business name at this point. Check with trademark registrations to make sure you aren't violating any trademarks with the name you choose.

2. Apply for a Federal Tax ID Number

All transactions made on part of the company are tracked via a tax ID number. It serves as a sort of social security number for your company. You'll want to register this as soon as possible in order to be in legal compliance.

3. Ensure all the Proper Paperwork is Filled Out and Filed with the Correct Authorities.

For both litigation protection and tax purposes, it is vital that you file the correct forms with the local legal authority. This is often the city government or local courthouse. There is usually a fee associated with the incorporation process that averages around $500.

4. If working in a Partnership, Determine How Much Equity and Responsibility Goes to Each Partner

Determining ownership and other important issues ahead of time can prevent tension and awkwardness in the future. Many partnerships fail to agree on the terms of the partnership ahead of time, which results in oversights later down the line. Determine how ownership is determined, what time commitment is expected, and the sort of salaries each partner is entitled to.

5. Ensure Employees are Properly Classified

Labeling an employee as an independent contractor can lead to legal repercussions and fines by the IRS. If someone is an employee, then you must provide benefits for them if they work over a certain number of hours per week.

6. Establish a Proper Business Plan and Ensure Policies are in Place

A business plan and operational policies will help establish your business and a roadmap to follow for the future.

7. Ensure All Permits are Valid

Depending upon the type of company formed, certain permits will be required. These can include zoning permits, liquor licenses, sales tax license, and more. Certain regulations may be stricter than others depending upon the type of business.

It is always in your best interest to consult with a business lawyer during the formation of a startup. A business lawyer can help ensure you stay in compliance with all laws, including the more obscure regulations you may not be aware of. Following these seven guidelines and seeking legal counsel will help ensure your startup is correct in the eyes of the law.

Offshore Company Formation in Gibraltar

When you start looking for European company formation options that will provide tax or operational benefits you narrow the list pretty quickly generally to:   
 UK   

Ireland (though not often)   

Isle of Man   

Jersey   

Guernsey   

Malta   

Estonia   

Latvia   

Cyprus   

Switzerland   

Lichtenstein   

Netherlands   

Luxembourg   

Gibraltar

There are lots more but I can't think of any reason you'd want to use any of the others when you've got those to choose from and frankly there are definite preferences among those depending on what you're doing. We'll cover each in detail in coming posts but for today we're going to focus on Gibraltar. As it stands today as of this writing we LOVE Gibraltar. But when I first started studying offshore jurisdictions I didn't quite understand why I would love it in spite of it being mentioned to me by several people.


On the surface Gibraltar isn't that spectacular:    While supposedly inexpensive by European standards Gibraltar company formation or incorporation typically costs around 850 GBP in the retail market not counting other required documents    There's a 10% tax rate and no tax treaties    Company formation takes a minimum 2 weeks often dragging on much longer    Director/ownership details are public    There's no domestic corporate banking to speak of    Over a certain level audited financials are requiredReading the list it doesn't sound that compelling to me and unless there are special circumstances I'd say if you're going to form a resident Gibraltar company you're probably better off looking elsewhere (alternatives discussed in other posts). It used to be that Gibraltar being an EU member but not a member of the VAT regime was helpful but updates to the VAT regime have mostly eliminated these benefits.Favorable Tax TreatmentHowever, Gibraltar is one of only 3, really only 2, jurisdictions within the EEA (European Economic Area) with a particular nuance in their corporate residency laws. Tax residency in Gibraltar is based ONLY on management and control, which means you can have a non-resident Gibraltar company. What does that mean?

A non-resident company isn't liable for any local income taxes except on domestic source income (no income in Gibraltar = 0% corporate tax rate). So we've just gone from Gibraltar being a 10% tax jurisdiction, which is OK, but not exceptional, to a fantastic 0% tax regime.Non-resident Gibraltar companies also benefit from not having the same requirements when it comes to the likes of audited financial statements that resident companies have.

Non-Residency Requirements

By default a Gibraltar company is not non-resident so to ensure it is you need to file according with the local financial authority and meet the appropriate criteria. These include:    No funds remitted to Gibraltar   

No business in Gibraltar or from Gibraltar sources (not a big deal since it's a tiny market of around 80 000 people)   

Management and control (generally speaking directorship of the company) outside of GibraltarThis does raise some questions such as:   

If no funds can be remitted to Gibraltar (there's a sort of remittance basis in their tax system) where should the company bank?   

If management and control isn't in Gibraltar where should it be?

Banking & Reputation

Corporate banking in Gibraltar is virtually non-existent anyway, while Gibraltar is fairly well known for some of their banking it is private banking not corporate banking and certainly not for small businesses. The good news is this means other jurisdictions, particularly other European jurisdictions are fairly familiar with Gibraltar companies banking abroad and relative to a lot of other offshore jurisdictions gaining banking for a Gibraltar company can be relatively easy.

Unfortunately, even though this is the case the available jurisdictions that accept non-resident companies with strong banking are few and diminishing so it's becoming more and more attractive to be able to bank locally in spite of an asset protection argument against doing so but that's for another post. The common places to look would be Malta, Andorra, eastern European jurisdictions or Caribbean jurisdictions. There are a few gems in there but a lot that aren't particularly attractive.

Gibraltar actually has a pretty strong reputation as it is what might be called a mid-shore jurisdiction competing within the global incorporation landscape on reputation as much as on tax and other features. This is very helpful in some parts of the world but in Asia it is a very unknown as a result hands on experience has shown in spite of a much better reputation it can be more difficult to open a bank account for a Gibraltar company in say Singapore than for say a Marshall Islands company as illogical as that might seem. Opening accounts in jurisdictions such as Singapore and Hong Kong is certainly possible but typically more of a hassle than doing so with some of the more well-known tax havens or by contrast more of a hassle than opening an account in a European jurisdiction where Gibraltar companies are more common.

Incorporating in Gibraltar

When actually forming a company in Gibraltar be prepared for a fairly rigorous process, this is not like opening a company in say Delaware or Anguilla where essentially just providing the name of the company and owners is good enough. In order to safeguard their reputation that Gibraltar agents will require details about the nature of the business comparable to what's required to open a bank account and may decline applications based on certain types of business, which might negatively impact the reputation of the jurisdiction. If you're aware of this in advance and have prepared the process can be relatively smooth but expect some hassles as compared with more traditional offshore jurisdictions. The end result if you're not prepared is incorporations can drag on months rather than the optimal two week formation time if you are organized and prepared.

When forming the company be sure to clarify you are forming a non-resident company (unless for some reason you want the company to be resident locally). Forming a local company certainly isn't the end of the world, while they will be subject to a 10% tax and audited financial statement requirements when the sales volume exceeds a certain threshold there is a quasi-territorial tax system in place that means depending on how operations of the business are structured the net effective tax rate might be quite low.

All companies in Gibraltar are "limited".Management and Control

For a Gibraltar company to qualify as non-resident it must have foreign management and control. What's the problem with this? It might not be a problem, it might mean the company can have essentially stateless tax residency much like how Apple Inc. has applied with a couple of their Irish subsidiaries in their tax strategy. However, for a lot of the world's jurisdictions, which determine corporate residency on the basis of management and control it could create issues. For example, I'd never recommend a Canadian company or individual form a Gibraltar company unless management and control were exercised somewhere else since Gibraltar doesn't qualify for Canada's favorable tax regimes and it also taxes based on management and control, meaning the non-resident Gibraltar company would end up fully taxable in Canada.

In other words whether to incorporate in Gibraltar becomes based on a variety of other facts and circumstances aside from the merits of the jurisdiction itself.

Bottom line if you're going to form a company in Gibraltar and not have it be resident there be sure the foreign management and control won't make the company taxable somewhere else, perhaps somewhere more onerous.Asset Protection & Confidentiality

Confidentiality rules in Gibraltar are mediocre at best. While there are definite limitations on information sharing, which might come about as a result of tax information exchange agreements, FATCA, EU Savings Directive, and multi-lateral exchange agreements, Gibraltar does definitely participate in exchange sharing initiatives and is rated as largely compliant by the OECD. Further as previously discussed ownership and director details are public making confidentiality directly through a Gibraltar company difficult.

Getting around this later challenge is achieved through the use of nominees or corporate directors/shareholders, which are permitted as of this writing.

Conclusion

Overall Gibraltar is one of the best European jurisdictions to form an offshore company depending on your individual circumstances. There are very favorable tax regimes available, the reputation is good, and you gain access to the European advantages as discussed in other posts. We like Gibraltar and use it fairly frequently to form companies.

If you're interested in any guidance as to which formation agents to use or how to go through the company formation process please contact us and we'll be happy to provide direction.If you like this article and want to learn to go offshore, the legal way, watch our free exclusive video on the three core principles of any international structure.

Company Formation in Jersey and Guernsey

No we don't mean New Jersey in the US we're referring to the British Channel Islands just off the coast of France. Jersey and Guernsey both (Alderney and Sark also fall into the same basket but are too small to refer to on their own so we'll focus on the big two) fit into a very limited category of jurisdictions within the world. These are zero tax jurisdictions that compete on reputation. That is to say their attitude is they are aware zero tax jurisdictions are frequently used for tax evasion, money laundering, etc. and their attitude is to be whiter than white in their reputations and transparency. The other two main contenders are Bermuda and Isle of Man with Gibraltar and a couple others playing a similar role but to a lesser extent.

Jersey and Guernsey are both effectively members of the European Union via their affiliation with UK but unlike Isle of Man are not a part of the VAT Directive.When the business makes sense to be located there I'm a big fan.

Let's start with the basics:   

In most cases they are 0% tax (there is technically what's called a 0/10 regime but the 10% tax rarely applies to offshore companies)   

No requirements to file audited financials (you'll hear me harp on this a lot as it increases maintenance expenses quite a lot when audited accounts are required) in fact generally no filing requirements at all, there is an audit requirement in Guernsey but there are also exceptions   

Company formation is even more arduous than in Gibraltar as part of the desire to many the jurisdictions clean and white with a great reputation   

Local banking is available in Jersey for companies but banks are very strict and the environment is changing a lot meaning many companies won't get accepted and local management is generally required for acceptance with only a few exceptions   

Corporate directors and shareholders are an option and records are not public though must be maintained at the registered office   

While company formation can in theory be completed within a day in practice the due diligence process generally means it takes much longer   

A variety of company types are available depending on the nature of the businessIn general Jersey and Guernsey are very similar. That being said I prefer Jersey 99 times out of 100 over Guernsey. Why?Jersey is slightly cheaper to form a company typically around 500 GBP (typically Jersey formation costs are around 1750 GBP and over 2000 GBP in Guernsey).

Jersey has lower operational challenges in terms of potential audit requirements, etc. making it simply easier and more cost effective to maintain a Jersey company in most cases.Jersey is the larger of the two islands with slightly more people and infrastructure, in particular more established banking, which gives a minor advantage on the challenging international banking front.Although different in their own ways they are both very similar to Isle of Man from an offshore perspective.So what's unique?Zero Tax RegimeWhile it is possible to structure zero tax companies within Europe Jersey, Guernsey and Isle of Man are the only truly zero tax jurisdictions within Europe. What does this mean?Two things primarily:    A company can be genuinely tax resident on its own in the jurisdiction and have a 0% corporate tax rate    Operations can take place locally and even though the income is domestic source income it can remain 0% taxThis later point is extremely important because although it's frequently possible to have a non-resident and consequently 0% tax company in a few other jurisdictions such as Cyprus and Gibraltar or use some careful structuring to reduce the taxable income to zero in jurisdictions such as Malta in each of those cases and in almost any jurisdiction on the planet domestic source income is taxable.In other words Jersey, Guernsey (and Isle of Man) are great places to set up a local operation from a tax perspective (there are other factors of course such as operational costs, infrastructure, availability of local skilled labor, etc.)

How to Register a Startup Company

There are several good reasons why it makes ample sense to register your company. The first basic reason is to protect one's own interests and not risk personal assets to the point of facing bankruptcy in case your business faces a crisis and also is forced to shut down. Secondly, it is easier to attract VC funding as VCs are assured of protection if the company is registered. It provides tax benefits to the entrepreneur typically in a partnership, an LLP or a limited company. (These are terms which have been described later on). Another valid reason is, in case of a limited company, if one wishes to transfer their shares to another it's easier when the company is registered.
Very often there is a dilemma as to when the company should be registered. The answer to which is, primarily, if your business idea is good enough to be converted into a profitable business or not. And if the answer to that is a confident and a resounding yes, then it's time for one to go ahead and register the startup. And as mentioned earlier on it's always beneficial to do it as a preventive measure, before you could be saddled with liabilities.
Depending upon the type and size of the business and the way you want to expand it, your startup can be registered as one of the many legal formats of the structure of a company available to you.
So let me first fill you in with the required information. The different company structures available are:
a) Sole Proprietorship. That's a company owned and operated or run by just one individual. No registration is needed. This is the method to adopt if you want to do it all by yourself and the purpose of establishing the company is to achieve a short-term goal. But this puts you at risk of losing all your personal assets should misfortune strike.
b) Partnership firm. Is owned and operated or run by at least two or more than two individuals. In the case of a Partnership firm, as the laws are not as stringent as that involving Ltd. Company, (limited company) it demands a lot of trust between the partners. But similar to a proprietorship there is a risk of losing personal assets in any eventuality.
c) OPC is a One Person Company in which the company is a separate legal entity which in effect protects the owner from being personally liable for any losses.
d) Limited Liability Partnership (LLP), where the general partners have limited liability. LLP combines the best of partnership firm and a company and the partners are not personally liable to lose their personal wealth.
e) Limited Company which is of 2 types,
i) Public Limited Company where the minimum number of members needed are 7 and there is no upper limit; the number of directors must be at least 3 and
ii) Private Limited Company where the minimum number of people needed are 7 with a maximum upper limit of 50. The number of directors must be 2.