Before you decide, here is all you need to know about the difference between Enterprise or Limited Liability Company.
In our encounter with business persons, we found out that a lot of them are always faced with the issue of whether to register their business as an Enterprise or Limited liability company under the Corporate Affairs Commission.
Under this discussion we would be drawing a line of distinction between registering your business as an Enterprise or Limited liability company, the features and benefits.
Firstly, let us discuss registration of business as an Enterprise.
An enterprise registration is also called Ventures or Business name registration which is specifically made for small business who want to uplift and incorporate their business under the Corporate Affairs Commission.
The Benefits:
- It gives your business a Corporate Identity and exalt customer confidence.
- The Owner is recorgnized as Proprietor.
- It usually carries the apellation Enterprises/Ventures Etc…
- It can only contain limited number of nature of business
- It can be presented for corporate account opening in banks
Now let us discuss registration as a Limited Liability Company.
In the purpose of our discussion, we will only be discusing about Private Limited Liability Company.
What is Private Limited Liability Company? — This is a separate legal entity that differentiate the owner of the business from the business itself.
To simplify further, The owner of a Private Limited Liability Company is known to be a Director and the largest shareholder of the company.
The Benefits:
- The Company name MUST end in Limited (LTD).
- One or more persons who is 18+ can be a director of the company.
- The owner of the company can exalt influence by absorbing all the shares of the company or be the largest shareholder.
- A minior can be considered to be a shareholder in the company IF two or more major (18+) are already a shareholder.
- It can absorb so many nature of business under the Company name.
Now that you are abreast of the difference between Business Enterprise registration and Limited Liability Company.
Endeavour to take a step further by registering your business through a capable corporate agency like us Click Here to get started.