If one or more entrepreneurs wants to form a trading entity, the choice is between a sole tradership, partnership, limited liability partnership (LLP) or incorporation as a company.

LLPs legislation applies some parts of the Companies Act (amended as necessary) to LLPs, in particular with regard to accounts and audit.

Advantages of incorporation

The advantages of incorporation derive from the essential distinguishing feature of companies – their status as legal entities separate from their members. The principal advantages are as follows.

Limited liability of members