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

[Mamoona Hussain]

KN: They have to register with the authorities.
APP: For instance, it will be Companies House in UK.
AN: Due to this, the company will be legal and able to gain the trust of more investors, increasing capital and finance raised, which can be used to offer a wider variety of goods, which attracts more customers.
AN+: This will increase the amount of revenue and profit margins earned, thus, ensuring the long term survival of the business.

KN: They have to prepare legal documents.
APP: Such as Memorandum of Association and Articles of Association.
AN: These documents contain the details about the business and this makes it easier for the banks to trust the business due to which they can gain larger amounts of loans with lesser interest charged, due to which the amount saved from the interests can be allocated elsewhere like improving working conditions.
AN+: This will motivate the employees, therefore, improving efficiency.

[Abdullah Mohsin]

[KN]A private limited company must register with the relevant government authority.
[APP] For example, SCEP in Pakistan gives businesses seperate legal identities, allowing the business to purchase land and vehicles in its own name.
[AN] This helps the business in building trust with shareholders, banks and investors, helping it secure long term finance.

[KN] A private limited company must prepare legal documents.
[APP] For example, the Memorandum and Articles of Association shows the company's aims and the ways it would be ran.
[AN] This ensures that the business has clear legal documents for operations, helping avoid any conflicts between the business and its shareholders, investors and bank manager.

[Mustafa Khan]

KN] pvt has to register it compony with legal authorities.
APP] for example, an entrepreneur will have to register its compony with compony house.
AN]this will bring the compony in govt notice, because of which the govt will tax them, which will contribute to the gdp of the country. moreover this compony will receive grants and subsidies from the govt, which can be used for internal growth of the business.

KN] pvt also has to submit income legal documents to the govt
app] for example, pvt compony has to submit income tax records yearly to give a complete financial record.
an]this will prevent penalties on the business which will reduce the chances of business being sealed

[Mahnoor satti]

[KN] A business should register with authorities.
[APP] For instance, a new private company before setting up should register with SECP in Pakistan.
[AN] Thus the shareholders would trust more in investing in to the business moreover this can help the owner to get limited liability.
[KN] A business should prepare legal documents.
[APP] For instance, they should prepare Memorandum and Articles of Association.
[AN] Thus this will make the business have its own legal identity which is separated from its owner.

[sarah_naeem]

[KN]: A private limited company must be registered with government authorities.
[APP]: For example, in the UK private ltd. companies must be registered with companies house while in Pakistan it must be registered with SECP.
[AN]: Thus, this makes the company legally recognised and builds trust among investors as private limited companies are secure and have less financial risk leading to long term growth of business.
[KN]: A private Ltd. company must prepare legal documents.
[APP]: For example, Memorandum and Articles of association establishes a companies identity and outlines a company's purpose and tells how it will run.
[AN]: Thus, this helps business run smoothly as it sets clear rules for the shareholders and directors which also reduces chances of conflict leading to a successful business with long term growth.

[M huzaifa jillani]

( Formality 1)
(KN)
A business must prepare a memorandum of association which explains the company name ,aims and share capital.
(APP)
For example when a company like Engro Foods Ltd was created in Pakistan it needed a memorandum to legally state its objectives.
(AN)
This ensures the government and investors know the basic details of company before it begins trading.

(Formality 2)
(KN)
A business must also complete an Articles of Association which sets the internal rules for running the company.
(App)
For instance nestle Pakistan Ltd uses its article to guide how directors are elected and how dividends are shared.
(AN)
This gives share holders and managers clear rules helping the business avoid conflicts and run smoothly.

[Ruqyia Salman]

[KN] One legal formality is submitting the Memorandum of Association, which sets out the company’s objectives and scope.
[APP] For example, this ensures the business is officially recognised by the government and can legally operate.
[AN] This gives clarity to investors and stakeholders about the company’s purpose, which helps build trust.

[KN] Another legal formality is preparing the Articles of Association, which outline how the company will be run.
[APP] For instance, it explains the roles of directors and how decisions will be made.
[AN] This ensures smooth operations and reduces disputes, making the business more efficient.st.

[Uqbah hadeed kayani]

[kn] Two legal formalities required to set up a private limited company are submitting the Memorandum of Association and the Articles of Association.
[app] For example, a new tech startup must file these documents to state its purpose, shareholder details, and internal management rules.
[an] These formalities make the company legally recognized, ensure transparency in operations, and help prevent conflicts between owners and directors.

[Haiderabbas]

KN: To set up a private limited company you must register with the authorities and prepare the legal documents.
APP for e.g. SECP in Pakistan registers companies while Memorandum and Articles of Association is the necessary legal document.
AN: The registration creates seperate legal identity and governance rules which protects and owner and leads to limited liability.

[Areeba Arshad]

[KN] To set up a private limited company, certain legal steps must be completed before starting operations.
[APP] For example, the business must be registered with official authorities, such as Companies House in the UK or SECP in Pakistan, and must prepare legal documents like the Memorandum and Articles of Association.
[AN] These formalities ensure the company is legally recognised, define how it will operate and be managed and protect both the owners and stakeholders through legal transparency.

[Tuqwa]

(KN):To set up a private limited company certain legal formalities must be completed before starting operations.
(app)For instance a business must register with government authorities such as Companies House in the UK or SECP in Pakistan to obtain legal recognition. Second it must prepare legal documents including the Memorandum of Association and Articles of Association which define the company’s structure and rules.
(an)These steps ensure the company is officially recognised by law and operates according to proper regulations and ownership rights.

[Daris]

KN: One legal formality required to set up a private limited company is to register the business with the government authorities.
APP: For example, in the UK companies must register with Companies House, while in Pakistan they register with the SECP.
AN: This process makes the business officially recognised and allows it to operate legally.

KN: Another legal formality is preparing legal documents such as the Memorandum of Association and Articles of Association.
APP: These documents show the company’s objectives and the rules for running it.
AN: They help define how the company will be managed and ensure transparency between the owners and the government.