3 Compelling Reasons Why Your Business Name Should Be Upgraded To The Status Of A Company Ltd By Shares.

Hello ….

2023 is upon us already…

Time indeed waits for no one and goes by very quickly.

So, if your company is still operating as an enterprise, I think growth and expansion should be your focus for next year.

And for that to happen, you need to upgrade the legal status of your company.

In this short one, I’m going to share with you 3 compelling reasons why you should quickly upgrade your business as a company Ltd by shares.

1.   A business name, an enterprise, or a venture has no potential value to an investor.

There is no equity, no board position, no shares absolutely nothing to give in return for the investments thereby reducing the possibility of having a desirable investor in your business.

2.   A Company Ltd by shares protects the shareholders from being personally liable for the debts of the company.

Their liability is only limited to the value of their investment in the company, unlike a business name where the owner’s liability is unlimited.

An owner of a business name is solely responsible for the entire debts of the business no matter how much.

His personal property is not protected.

 He can be sued and his personal properties sold off to offset the debts of the company.

3.   A Ltd liability company has a separate legal personality from the day it is registered.

It becomes an artificial person with all the powers of a natural person.

A company can enter into contracts and can sue and be sued in its own name e.g ABC LTD but a business name has no such power.

A business name can only sue and be sued in the Proprietors name.

If you already registered a business name you can still upgrade your business to a ltd liability company.

And If you are just about registering your business, just go right ahead and float it as a company.

It doesn’t stop you from starting small.

But it goes a long way to show how serious are with the growth and expansion of the business.

If you have any question or need any form of help with your upgrade, do respond to this email and we would take it up from there.

Cheers to your #legalsense.

-Barinaada