- Sole Proprietorship
- Limited Company or Limited Corporation.
I am going to go into detail explanation of each.
Sole Proprietorship: This is the kind of business organisation that is most popular with most import/export agents. A sole proprietorship also known as a sole trader, or simply proprietorship is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business. All profits and all losses accrue to the owner (subject to taxation). All assets of the business are owned by the proprietor and all debts of the business are their debts and they must pay them from their personal resources. This means that the owner has unlimited liability. It is a "sole" proprietorship in the sense that the owner has no partners (partnership).
A sole proprietor may do business with a trade name other than his or her legal name. This also allows the proprietor to open a business account with banking institutions.
Partnership: A partnership is a type of business entity in which partners (owners) share with each other the profits or losses of the business. Partnerships are often favored over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profits before it is distributed to the partners (i.e. there is no dividend tax levied). However, depending on the partnership structure and the jurisdiction in which it operates, owners of a partnership may be exposed to greater personal liability than they would as shareholders of a corporation.
Limited Company:A limited company in the United Kingdom or Ireland is a corporation with shareholders whose liability is limited by shares (Ltd), which is the most common form of privately held company. Setting up as a limited company is an attractive option for many people as, unlike sole traders, personal assets are completely distinct from company finances.
The private company equivalent in Australia is the Proprietary Limited company (Pty Ltd). An Australian company with just Limited or Ltd at the end of its name is a public company, such as a company listed on the ASX (although public companies can be, and often are, unlisted). Australia doesn't have a direct equivalent to the plc.
private company limited by guarantee This type of Company does not have share capital but is guaranteed by its "members", who agree to pay a fixed amount in the event of the company's liquidation. Frequently charities incorporate using this form of limited liability. Another example is the Financial Services Authority. In Australia only an unlisted public company can be limited by guarantee. private company limited by shares It has shareholders with limited liability and its shares may not be offered to the general public. public limited company (plc) Public limited companies can be publicly traded on a stock exchange — similar to the U.S. Corporation (Corp) and the German Aktiengesellschaft (AG). A shareholder in a limited company, in the event of its becoming insolvent (equivalent to bankruptcy in the US) would be liable to contribute the amount remaining unpaid on the shares (usually zero, as most shares are issued fully paid). 'Paid' here relates to the amount paid to the company for the shares on first issue, and not to be confused with amounts paid by one shareholder to another to transfer ownership of shares between them. A shareholder is thus afforded limited liability.
A limited company can be registered in England and Wales, Scotland, Northern Ireland or Australia. The registration of companies in Great Britain (England, Scotland and Wales) is done through Companies House. Registration of companies in Australia is done through the Australian Securities and Investments Commission (ASIC).
The registration of companies in Northern Ireland has been the responsibility of Department of Enterprise, Trade and Investment. From 1st October 2009 responsibility transfers to Companies House, under the Department for Business Enterprise and Regulatory Reform (BERR).
Northern Ireland will retain a registry function and presence along similar lines to the Companies House Scotland model. This means that the office will remain in Belfast and we will retain the Registrar for Northern Ireland.
Equivalent constructs to limited companies can be found in most countries, although the detailed rules governing them vary widely. It is also common for a distinction to be made between the publicly tradable companies of "plc" type (like, for example, the German Aktiengesellschaft (AG) and the Mexican, French and Polish S.A.), and the "private" types of company (such as the German GmbH and the Polish Sp. z o.o.).
After taking into consideration which kind of business entity you want to build, then you decide and then choose. I will be writing more on Importation and exportation, thank you for reading my blog.