Business Start-up services of Mumtaz and Associates will help you in those essential early stages of business, giving you advice to assist you to form a business built for success and able to plan and grow effectively without avoidable legal obstacles and litigation. We will assist you to make the right decisions at the right time. Whether you intend to set up a sole proprietorship concern or a company or a partnership firm we focus our legal services required for your business needs.
Business Can be Set-Up in the following forms
1. Sole Proprietorship.
2. Company Registration.
a. Private Limited
b. Public Limited
c. Limited by Guarantee
3. Partnership & Joint Venture.
Why Form a Company in Pakistan
- Protection from Personal Liability.
The primary reason for selecting a limited liability company is the protection from personal liability. This is because a company it is regarded as a separate legal entity or an artificial person, which can sue and can be sued by its own name.
This concept of limited liability becomes critically important if the company is unable to pay its debts and a liquidator is appointed.
By contrast a sole trader/ sole proprietorship concern or a person trading in partnership will always be exposed and personally liable for business debts that cannot be met by business funds.
- Continuity of existence.
A company will continue to exist until it is removed from the register. It can often survive many changes in ownership or management.
By contrast, a sole trader business ceases to exist if the trader dies or stops trading. Similarly, in the case of a partnership the retirement or death of a partner usually brings that partnership to an end.
- Market Place Credibility
As an internationally recognized business structure, the limited liability company structure enjoys greater credibility and a more professional image in the marketplace than the sole trader option. This is why many businesses in start as sole traders/ sole proprietor, but upgrade to the company status once they become established.
- Transferability of Shares.
Shareholders may sell or otherwise dispose of their shares at any time (subject to any restriction imposed in the company's Articles of Association). This makes a company much easier to sell or pass on to others (such as your children) than other business structures.
A partnership interest, on the other hand, is generally not able to be assigned or transferred (you have to end the partnership).
- Control by Shareholders.
In small companies the shareholders are also the directors of the company, often the CEO are the actual owners of the Company. In small business, it is possible to form a company for reasons of market credibility, continuity and protection from personal liability and appoint immediate family members as share holders and directors in the company. Therefore it is recommended to form a company, as oppose to sole trader/ sole proprietorship business, for private and small business because actual control over daily operation will rest with the actual owners.
However in larger companies most shareholders have no say in its daily operations. All shareholders that hold voting shares in a company may participate in the election and removal of directors. This gives shareholders the collective right to elect the directors and have the ultimate control of the company without necessarily being concerned in its day-to-day affairs.
We Commonly Advise and furnish Legal Opinions on the following areas.
- Advice and assistance on Incorporation and Registration of a Private and a Public Company.
- Advice and assistance on Incorporation and Registration of a Partnership Firm.
- Drafting Memorandum of Association and Articles of Association of your company.
- Documentation in relation to Annual General Meetings and Extraordinary General Meetings.
- Preparing paperwork for changes such as directors/secretary, registered office, accounting reference date.
- Obtaining the Registration Certificate.
- Preparing the Initial Legal Documents for proper performance of your company.
- Registering your Trade Mark before the Competent Authority.
- Advice on employing people within the business and drafting.
- Employment Contracts.