Registering Your Company: Which is More Efficient?
There are many kinds of companies that you can setup for your own, but choosing what type of company you want to create might be of considerable proportions. A business is a separate entity from those who own and operate it or its assets. It is a profit-making industry based on its products or service specialty which are being market to the general public or other private organizations. It has to be registered to the government for taxation purposes and in order to create jobs where the people could be employed in order to help the government and the society in general. It is important that you consider the advantage and disadvantages of it and in order to get some idea about the benefits, let us list each of the known types of businesses.
- Corporation/ Incorporation – is considered as a “separate legal entity” and has/can exercise the rights like the ones of a real person. Its benefits include limited liability, perpetual existance, advantages in taxation, easy to raise capitall, transferable ownership.
- Sole Proprietorship – is a business entity which has no distinction (legal) from the business owner. Having sole propreitary ownership of your business gives you total control over it; however, you will be liable to any loans made for your company, it’ll be harder to raise capital and you could easily lose the company with no investors to back it up.
- Cooperatives – is operated and owned by a group of individuals to achieve a mutual benefit. Cooperatives are convenient for a community-based business wherein the owners are the members of the community itself, but it can also be used by people who plan to have a large capital investment and profit returns for their business. The best thing about a cooperative business is that all the members help to maintain and keep the business profitable.
- Partnerships – can only exists between two individuals which in this case are the owners of the business. Much like a sole propreitorship a partneship type of business has unlimitted liabilities.
- Limited Liability Company – is a kind of flexible company that has some of the characteristics of a corporation and a partnership business, but it is not organized like them or it doesn’t need to.
Choosing from among this list will make it more relevant when you’ll consider company formation or registering your company to the government. There are rules when forming a company and they are for strict compliance, you can find them in the Companies Act of 2006. Basic business requirements include a company name, company address, individual personal or professional address for the company directors, ensure that your business is functional and not a hoax and that it has a high quality product or service. If you think that you have met all these legal requirements then you may proceed in mailing the application to the Companies House.
If you’ll employ the expertise of a company formation agent then you will pay a cheaper fee and you don’t have to go through all the hassels of the application process. Basically it is more efficient to have a third party company formation agent to register your company on your behalf, than doing it yourself.