Is Company Formation Right For Your Business

1. Is Company Formation in Oman Right For Your Business? The type of legal business structure that you choose will depend upon your personal circumstances and the type of business that you operate. Most new businesses that are operated by a sole proprietor have only two options. They can either start business as a sole trader or choose to form a limited company. The simplest format to operate is that of a sole trader business. The instant that any person starts to sell goods or services they are essentially a sole trader. There is no official register for this type of business. The only responsibilities that you have are to tell the tax authorities that you have started trading and to keep accurate accounting records. Sole trader status is popular for business start ups as the administration is limited and closing the business is relatively easy. This provides greater flexibility if the success of the business is uncertain. setting up a company in Oman is an alternative to operating as a sole individual. Operating your business as a company adds credibility and can protect the business owners from any potential liabilities. As a sole trader you are responsible personally for the acts and omissions of the business. For example, if your business were to be sued for an amount of money that it could not afford, the individual is personally responsible. Their money, their home and even their possessions could be seized to repay the business debt. With a company it is the company that is liable for this debt and not the business owner. The owner of the company is protected from the liabilities of the company. Is Company Formation Right For Your Business?