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WHICH BUSINESS STRUCTURE IS BEST FOR YOU?
Before you start a business, you will need to consider a number of factors in order to determine which structure is the most suitable for your needs. Factors that you may consider include:
- How many owners will there be in the business?
- What liabilities and responsibilities are you prepared to take on?
- How much capital are you prepared to invest and how are you going to obtain the desired capital?
- How easy is it to transfer the ownership?
- Does your desired type of entity has perpetual succession?
- What are the on-going compliance requirements and how costly is it to maintain the entity?
- How easy is it to close a business? What are the options?
Below is a summary of comparisons between the different business structures that may be helpful in your decision making:
Comparisons of features of Sole Proprietorship, Partnership, Limited Partnership, Limited Liability Partnership and Limited Company
Types of Business Entities Sole Proprietorship Partnership Limited Partnership (LP) Limited Liability Partnership (LLP) Limited Company Ownership One person At least 2 and up to 20 partners At least 2 partners; one general and one limited partner. No maximum limit At least 2 partners, no maximum limited Exempt Private Company (EPC) – 20 members or […]
Comparisons between Limited Company, Foreign Branch Office and Representative Office
Limited company (private and public companies) Foreign Branch Office Representative Office Entity’s Name Need not be the same as parent company Must be the same as the parent company Must be the same as the parent company Legal Status A separate legal entity Not a separate legal entity. It is considered as an extension […]
