Limited Liability Companies: Basic Knowledge and Process of Formation

Multi-national and local companies have flooded our markets with their range of products and services. We hear about companies so often but most of us do not know that there are types of companies. The words LTD, PVT and LLC as the suffix of the company names define the structure and working policies of the companies. The word LTD in an establishment Ltd.defines that the company has liability limited to its creditors and the word PVT means that the company is private. While these were things you probably would have heard of, LLC is a newer form of establishment and lesser known.

Limited Liability Company, commonly known as LLC defines that the liability of the partners in the company is limited to the amount they contribute or the share they hold in the company. This keeps them safe from losses incurred by the company due to wrong decisions taken by the other partners. This sort of establishment Ltd.is tricky to form and involves lots of processes and legalities which need to be fulfilled before starting such a company.

To form an LLC, one needs to register the name and office of the company. The name of the company shall be distinctive and not have similarities to existing brand names or words restricted to use as company name by the government. After registering the name and office, a memorandum of association is to be formed, stating the names of directors, objectives, share capital of the company. This memorandum of association shall be undersigned by the directors and by the witnesses to incorporate the company. After formation of MOA, it should be approved by the tax authorities of the state and a trade declaration shall be made along with the submission of the registration form with the registrar of companies.

After the approval of the form, a letter of incorporation shall be allotted to the company to start its processes and a Tax Identification Number shall also be allotted. This process is tedious and requires expert legal help and one such legal help providing law firm is AS Legal.

About AS Legal- Zalozeniesroapredajsro.sk:

AS Legal is a law firm based in Slovakia providing expert solutions in forming establishment S.R.O. (založenie S.R.O.). Their other services include business law and virtual office setup service. To know more about AS Legal, log onto: Zalozeniesroapredajsro.sk.

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