23 Outline two legal formalities required to set up a private limited company.

[Sir Afzal Shad]

23 Outline two legal formalities required to set up a private limited company. [3]
Hint: Register with authorities > Example: Companies House in the UK or SECP in Pakistan.
Hint: Prepare legal documents > Example: Memorandum and Articles of Association.

[EmmanWaseem]

One is to register with the authorities
For example company house in SECP in Pakistan
Another one is to prepare legal documents
For example memorandum and articles of association

[Aarib Saad]

(KN)A business will have to register with authorities when setting up a private ltd. company.
(APP)For instance, if one wants to set up a private ltd. company in the UK they will have to register with Companies House Agency.
(AN)This would in turn ensure shareholders that the business has been legally registered, leading to higher investment, allowing business to expand through means like advertising.

(KN)The business will have to prepare legal documents.
(APP)For instance, Memorandums and Articles of association.
(AN)This in turn can lead to high consumption of time, leading to the business missing market opportunities, decreasing business market share.

[Shaliza khawaja]

A private limited company needs to be registered with the government for example giving documents to government invoving what the company is for, rules regulations or how it will run. this gives the company a seperate legal entity, meaning the owner has limited liability. This will also attract more investors and it gets easier to get loans from banks.
A private limited company needs to keep acurate records of its directors shareholders and finances for example the company has to provide all the financial documents to the government for the company, to ensure the company is following the rules and regulations or how its performing financially, if a company fails to do so they will charged a fine or strik of the registration.

[Abdullah Altaf]

[KN] Private limited company have to register it self with authorities.
[APP] For instance to register as a private limited company in Pakistan the business first have to get approval from SECP.
[AN] This ensures the business operates legally, boosting investor confidence and making it easier to secure loans, which supports business growth and stability.

[KN] Business have to prepare legal documents such as Memorandum and Articles of Association.
[APP] For example, the business needs to outline the company's objectives, shareholder rights, and the internal management structure.
[AN] This ensures clarity and reduces potential disputes among stakeholders, fostering a stable and trustworthy business environment.

[Muaz Aamir]

KN: To set up a private limited company, certain legal documents must be completed before it can start trading.

AP: For example, the business must send in documents such as the Articles of Association and the Memorandum of Association to the authorities.

AN: These documents set out how the company will be run and who owns it. They make sure the business is officially recognised as a company. This also gives the owners limited liability, which means their personal assets are protected if the business fails.

[shamaim shakeel]

Choosing a unique company name
KN: A private limited company must choose a business name that is unique and not already in use.
APP: For example, someone setting up a clothing brand cannot register it under a name already taken by another Ltd.
AN: This avoids confusion in the market and protects the company’s identity.Certificate of Incorporation
KN: A private limited company must get a Certificate of Incorporation.
APP: For example, Companies House gives this once the business is registered.
AN: It proves the company is legal and can start trading

[Abdur Rehman khan]

[KN] A private limited company must register with government authorities.
[APP] For example, in Pakistan this is done through SECP (Securities and Exchange Commission of Pakistan).
[AN] Registration ensures the business gains legal recognition which allows it to operate formally and builds trust with banks and investors.

[KN] It needs to prepare legal documents like the Memorandum and Articles of Association
[APP] For instance, these documents outline the company’s objectives internal rules, and rights of shareholders.
[AN] This provides a clear legal framework prevents disputes between owners and ensures smooth running of the business.

[Arham Qadri]

[KN] One would be the legal documents required like the MOA (Memorandum of association) and AOA (Article of association).
[APP] It tells abbot the rights of shareholders and the rules and regulations for internal management and governance of a company.
[AN] Hence this prevents misunderstanding between the owner and helps in running the business smoothly without any problems.

[KN] Another is to get registered with the government and authorities.
[APP] For example in Pakistan they have to get registered with the help of the Security and Exchange Commission of that country.
[AN] Hence this enables them to work normally as trust would be created with the banks, and the customers would become loyal which will increase sales and hence generate more profit.

[Abdul Hadi]

KN: A private limited company must be registered with relevant authorities.
APP: For example, Companies House in the UK or SECP in Pakistan handles the registration.
AN: This allows the company to register and operate officially, differentiate itself due to unique and registered name, be able to own its name and operations locally and in international markets.

KN: The company must prepare legal documents such as memorandums and articles of association.
APP: These documents highlight how the company will be run.
AN: This ensures the rights of both the owner and investors are protected, this encourages investment as investors are aware of the protection of their rights.

[hassanalizafar]

[KN] A private limited company must be registered with government authorities.
[APP] For instance,in the UK it is registered with Companies House while in Pakistan it is registered with SECP.
[AN] This makes the company a recognised legal entity which allows it to operate officially giving it the right to enter contracts which builds trust with banks and investors helping it secure finance more easily hence supporting long term growth.
[KN] A private limited company must prepare key legal documents.
[APP] For instance,the Memorandum and Articles of Association outline the companys purpose and how it will be run.
[AN] This sets clear rules for shareholders and directors which reduces the chance of conflicts leading to smoother management increasing confidence among investors and partners allowing the company to operate more effectively hence supporting business stability and growth.

[abdurrehman waseem]

KN: One legal formality is registering the company with authorities. Another is submitting documents like the Articles of Association.
APP: For example, in many countries, the business must register with the registrar of companies and submit documents outlining shareholder rights.
AN: These formalities make the business a separate legal entity, giving shareholders limited liability.

[Naveen fatima]

[KN]One legal formality is preparing the Articles of Association which explains how the company will be run.
[APP] For example, it sets rules about meetings, voting rights and how profits are shared.
[AN]This makes sure the business runs smoothly, avoids conflicts between shareholders and makes sure no one is treated unfairly.
[KN]Another formality is registering the company with the authorities by submitting the Memorandum of Association.
[APP] For instance, this document states the company’s name, purpose and details of shareholders.
[AN]This gives the company a legal identity, allowing it to operate officially and gain limited liability protection.

[Fatima ibtehaj]

[KN]Registering with Companies House and creating a Memorandum and Articles of Association
[APP]For example, when someone wants to start a company like a small tech firm, they must submit their details to Companies House before they can trade legally For instance, a new clothing company will use these documents to decide how decisions are made and how shares are owned by the founders
[AN]This registration protects the owners by limiting their personal liability and helps customers trust the business because it is officially recognised

[Hajra]

K: One formality is writing the Articles of Association, which are the rules about how the company will run.
App: For example, it can include how meetings are held and what rights shareholders have.
An: This helps keep the business organised and within the law.

K: Another formality is making the Memorandum of Association, which shows the company’s name, aims, and who the first shareholders are.
App: For example, it proves the company is officially allowed to start.
An: This gives the business its own legal identity, separate from the owners.