Choosing the right vehicle.
WHAT TYPES EXIST
Private company limited by shares Public company limited by shares Company limited by guarantee Unlimited company Incorporated trustees Business name registration Limited partnership and limited liability partnership, where available
WHAT MOST BUSINESSES USE
A private company limited by shares.
WHY
It provides limited liability with the fewest obligations.
WHAT A PUBLIC COMPANY REQUIRES
More directors Higher capital Greater disclosure Audit obligations regardless of size
WHEN IT IS NEEDED
Where shares will be offered to the public.
WHAT A COMPANY LIMITED BY GUARANTEE SUITS
Non-profit purposes.
WHAT IT REQUIRES
Ministerial consent, adding to the timeline.
WHAT A SMALL COMPANY CLASSIFICATION PROVIDES
Reduced obligations, where the criteria are met.
WHAT THE CRITERIA TYPICALLY RELATE TO
Turnover, assets, and the absence of foreign or government participation.
WHY IT MATTERS
It affects audit requirements and some filings.
WHAT TO ESTABLISH
Whether your company qualifies.
WHAT SINGLE-MEMBER COMPANIES CHANGED
The ability to incorporate with one director and one shareholder.
WHY THAT MATTERS
Sole founders no longer need a nominal second party.
WHAT TO AVOID
Adding shareholders for form rather than substance.
WHY
Removing them later is difficult.
