1. A limited company is a separate entity and is a separate person in the eyes of the law.
2. Since a limited company is a separate person, it can hire ‘employees’. These employees are responsible for running of the company.
3. A limited company can now be set up with a minimum of one shareholder and the limit of their liability is as per the value of shares they own.
4. The word ‘limited ‘ or ‘Ltd’ must always be put after the name of the company.
5. The liability of the shareholders is limited to the amount paid by them during the purchase of the shares.
6. Generally the directors are not held liable for wrong dongs of the company, unless of course the directors act outside their powers as enumerated in the Articles of Association.
7. Decisions on the way the company is run is done in a meeting by the board of directors and bound by its resolutions.
8. The profits earned by the company can be distributed among shareholder as dividend. Alternatively, it can be also used for the expansion plans of the company.
9. A company has a perpetual existence, which is not affected by the death of any shareholder or director.
Procedure and Documentation:
- CR 14 Name Search and Reservation
Complete Application for Reservation of Company name, CR 14 or conduct an online search and reservation.
- In the event you do not register the name within 30 days and do not wish to lose that name, you will be required to reserve the company name in order to use it after 30 days.
- Preferably have three names in mind that are to be reserved pending registration.
- The name should not be the same as another Limited Company on record in the company registry in which you are filing or registering.
2. CR 1: Application to Register Company Limited by Shares
Indicates summary details of the intended company. Requires details such as directors details and class of shares
3. CR 2: Memorandum of Association
Submit Memorandum of Association in as in Form CR 2 indicating:
- The purpose/object of the company,
- Names of subscriber(s)
- Registered Office of the Company
- Nominal Share Capital and Division of Shares
4. CR 8: Notice of Residential Address of the Company Directors
General residency address of the directors.
5. Statement of Nominal Capital
States the Nominal capital of the company at registration; which figure is used to calculate stamp duty.