Limited Liability Company | Which Business Type Suits Your Dream?

A limited company is a general form of incorporation that limits the amount of liability undertaken by the company’s shareholders. It refers to a legal structure that ensures that the liability of company members or subscribers is limited to their stake in the company by way of investments or commitments. As noted, in a limited company, the assets and debts of the company are separate from those of the shareholders. As a result, should the company experience financial distress because of normal business activity, the personal assets of shareholders will not be at risk of being seized by creditors. In private limited companies who may become shareholders or members are restricted by law, however persons can become members or shareholders by buying onto public limited companies. 

Visit our website at kazicompany.com; proceed to business registration, complete the application form and one of our trusted representatives would contact you.

Our package include the following 

  1. Name Approval /Name Reservation 

In selecting a name for your business one must be mindful not to use any word or phrase that may be considered obscene, immoral or suggestive. The Registration of Business Name Act section 16 gives the registrar the power to cancel or refuse any business name. 

 Your business name must be distinctive. It must not cause confusion or be misleading.

2. Name Search

The second step to having your business registered is having a name search done. A name search refers to the process by which the registrar ensures the availability of the business name chosen by the directors. 

3. Company Registration 

Once your company name has been approved the following forms would be filled out.

  • Articles of Incorporation – This form would cover areas such as name of the company, class of shares, main business activity and the names of the incorporator/s. 
  • Notice of Directors – This form would be used to capture the two or more persons who are the directors of the company in question. 
  • Notice of Address – Each company needs to have an address associated with their operations. The address given is usually where the intended office of the company would be situated. 
  • Notice of Secretary – Either one of the directors can be appointed as the company’s secretary.

4. Registration Certificate

Upon completion of the registration steps above the new business would now be provided with a business certificate with a unique registration number. 

5. Issuance of Shares

Once the business has been registered the next step is issuing shares among the directors of the company. Shares are units of equity ownership interest in a corporation that exist as a financial asset providing for distribution in any residual profits, if any are declared, in the form of dividends. There is no specific amount of shares to be issued therefore share amounts may vary from director to director. In order to have this process completed the following forms would be filled out. 

  • Form 45 – Return of Beneficial Interest in the shares of a company
  • Form 46 – Return of Issuance or Transfer of Shares 
  • From 42 – Declaration of Beneficial Ownership

6. BIR Registration 

A BIR Number is an identification number used by the Board of Inland Revenue (BIR) in the administration of tax laws. Once your business has been registered an AOI-002 form can be filled out accompanied by identification for all directors and submitted to the BIR office to have a designated number assigned. This Board of Inland Revenue file number would be used in the payment of taxes such as Health Surcharge, PAYE, Corporation Tax, Green Fund and Business Levy. Each one of the above mentioned taxes would also be assigned their own account numbers.

7. Bank Account Application 

This process involves filling out a Commercial bank account Application form from any bank of choice by the directors. This account can be used as a record of all financial transactions of the business.

8. 1-3 year Cash Flow Projection 

 A Cash flow projection is a breakdown of the money that is expected to come in and out of your business. This includes calculating your income and all of your expenses, which will give your business a clear idea on how much cash you’ll be left with over a specific period of time.

9. Opening Balance Sheet 

An opening balance sheet contains the beginning balances at the start of a reporting period. … If a business has just begun, then the opening balance sheet will contain no account balances at all, or perhaps the equity contributions (and offsetting cash balances) of investors.

10. Company stamp

Once the registration process is complete a simple business stamp bearing the business’ full name can now be acquired. This stamp would be used on applications like the Commercial Account Application mentioned above and many others. 

At kazicompany.com our experienced professionals are here to help you with your business registration and acquisition of the items above. Go to business registration, complete the application form and one of our representatives will contact you.

 

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