AuditCorporate

TYPES OF COMPANIES BY LIMIT

By January 18, 2019 No Comments

There are three types of the companies which may be formed under the Companies Act, 2017:

  1. Company limited by the shares

Companies limited by the shares, restrict (by law) the liability of its owners to the extent of face value of the shares they own in a company. The remaining liability (i.e. other than the limit) falls upon the company instead of its owners. These companies are able to raise additional capital by issuing new shares.

  1. Company Limited by the guarantee

Companies limited by the guarantee, restrict (by law) the liability of its owners to the extent they guarantee to contribute in the event of liquidation of the company (if the company has no share capital) and in case a company has share capital, this shall also include the amount of share capital they subscribed. These companies are restricted to raise additional capital by issuing new shares. Normally, these types of companies are formed for trade associations or clubs.

  1. Unlimited Company

It is possible or allowed to incorporate a company as an unlimited liability company with the Securities and Exchange Commission of the country. The only difference between company limited by the shares and the company having unlimited liability is โ€œthe unlimited liability company imposes no restriction to the owners of the business against the liabilities/debtsโ€. These types of companies are very rare and are used mostly by the Partnership type of business.

 

Share this article on social media

Filing VAT Return in UAE

| Uncategorized | No Comments
Business which are registered in Value Added Tax (VAT) or โ€œTaxable personsโ€ must have to file VAT return to the Federal Tax Authority (FTA) at the end of each tax…

VAT Registration in UAE

| Uncategorized | No Comments
In the UAE businesses start their registering in Value Added Tax from 1st October 2017. The topics will be covered in this article are: 1) Eligibility for registration 2) How…

What is VAT in UAE?

| Uncategorized | No Comments
Value Added Tax (VAT) introduced in the UAE on 1 January 2018 and VAT is the type of indirect tax levied on the purchase or usage of goods and services.…

Business VAT Refund Scheme in UAE VAT

| Value Added Tax - UAE | No Comments
In this article we discussed about the business VAT refund scheme under VAT in UAE. The VAT refund scheme is very important for the business because it gives a lot…

Leave a Reply

Contact Us

We are glad that you preferred to contact us. Please fill our short form and one of our friendly team members will contact you back.

X
CONTACT US