Benefits of Setting up A Company

1. Benefits of Setting up A Company If you are planning for company formation in Oman, you will probably want to consider whether or not you should set up a company. Or maybe you have been running your business successfully as a sole trader, and now think it's time to make it more formal by incorporating it as a registered business. Factors to Take Into Account There are a number of factors to take into account when you set up a company. In most jurisdictions, registered companies are obliged by law to file accounts every year. Often, it is not acceptable to merely submit your company accounts. Many jurisdictions will only accept accounts that have been audited by an independent and certified auditor. If this is the case in your jurisdiction, then you will have to pay the auditor's fees every year, and this is likely to be a new, and sometimes considerable, expense for your business. There will also be costs associated with legally establishing the company. You will also need to draw up formal documentation that details the nature of the business, its corporate rules and structure, and furnish a list of directors. You may also be required to invest an initial lump sum into the business, which may or may not be accessible once invested. Advantages to Setting up a Company There are many advantages to setting up a company in Oman, the most important of which is that a company in law is a separate entity from the company owners. What this means is that any legal action that is taken against the company does not impact on the company owners as individuals (assuming that the business has been run legally). To demonstrate the importance of this, let's use an example. A sole trader who specializes in building and selling custom cars is sued because one of the cars he sold has crashed, and accident investigators have determined that the cause of the crash was faulty construction. If the lawsuit is successful, the sole trader may be required to pay compensation, and all his assets, including personal assets may be seized to fund the compensation.