Hello ...

I hope the Independence holiday was a splendid one for you!

In today's newsletter, we would address a very important topic you should care about if you ever have the intention of owning a group of companies.

Lets get right into it...

One of the first and most important things you should know is that having a combination of different businesses is not what makes a group of companies.

Floating your business as a limited liability company gives you the right to have as many object clauses as you want but that doesn’t make it a group of Companies.

Also, you can't legally use the word " group" for your companies just because you have several businesses under a single registration.

You need the consent of the registrar general of the Corporate Affairs Commission (CAC) to legally use the word "group" in your company name.

Before this consent is granted, you must show evidence of at least 3 registered limited liability companies.

And these companies must have common directors and shareholders.

When this condition has been satisfied, then you will incorporate a fourth company where all the existing companies are now going to be shareholders in the new company (group)

.

And all the shareholders must approve the decision to float a group of the company.

These are just the basics.

There are so many other factors to consider before floating your business as a group of companies.

And by the way, floating a group of companies is only limited to the businesses that are registered as a limited liability company and not enterprise or business names.

You can't have two limited companies and one business name.

All the subsidiaries have to be LLCs.

Reply to this email now and let us help you avoid expensive legal mistakes in your business.

To your #LegalSense

#BarinaadaLegal

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