A company is a separate legal entity and can incur debt, sue and be sued. The company’s shareholders (the owners) can limit their personal liability and are generally not responsible for company debts. A company is a complex business structure and has high set-up and reporting costs. You can form a company as either a private (also known as proprietary) or public entity. A registered company must have at least one director (and a company secretary unless it is a private company)
- Limited liability for shareholders.
- Well understood and accepted.
- Able to raise significant capital.
- Offset against future profits.
- Easy to sell and pass ownership.
- Profits can be reinvested & paid
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