Exam (elaborations)
MRL2601 Assignment 2
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- MRL2601 Assignment 2
- Institution
- University Of South Africa
MRL2601 Assignment 2
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MRL2601Assignment 2
(ANSWERS)
Semester 2 2023
ADMIN
[COMPANY NAME]
, QUESTION 1 Nandi and Patricia want to start a catering business together
called It-out (Ply) Ltd. Briefly explain the steps which they would need to lake
In order to incorporate a company. (5)
To incorporate a company, Nandi and Patricia will need to follow several steps. Here are
the key steps they should take to incorporate their catering business, It-out (Ply) Ltd:
1. Choose a Business Structure: They should decide on the type of company structure
they want, such as a private limited company, partnership, or sole proprietorship. In this
case, since they want to start a company called "It-out (Ply) Ltd," they are likely opting
for a private limited company.
2. Choose a Name: They need to select a unique and available name for their company.
They should check with the relevant government authority or registrar to ensure that
the chosen name is not already in use.
3. Draft a Memorandum and Articles of Association: They should create the
company's Memorandum of Association and Articles of Association. These documents
outline the company's objectives, rules, and regulations governing its operations.
4. Appoint Directors and a Company Secretary: They must appoint directors for the
company. In many jurisdictions, a private limited company must have at least one
director. They may also need to appoint a company secretary, depending on local
regulations.
5. Share Capital and Shareholders: Decide on the initial share capital and allocate
shares among themselves and any other potential investors. Prepare a share certificate
for each shareholder.
6. Registered Office: Provide the registered office address of the company, which will be
the official address for legal correspondence.
7. Register with the Government: File the necessary incorporation documents and pay
the registration fees to the appropriate government authority or registrar. This typically
includes submitting the Memorandum and Articles of Association and other required
forms.
8. Obtain Necessary Permits and Licenses: Depending on the nature of their catering
business and the local regulations, they may need to obtain permits or licenses to
operate legally.
9. Tax Registration: Register the company for taxes, including income tax and VAT/GST,
if applicable in their jurisdiction.
10. Bank Account: Open a business bank account in the company's name to manage
finances separately from personal accounts.
11. Compliance: Ensure ongoing compliance with local laws and regulations, such as filing
annual financial statements, holding annual general meetings, and paying taxes.
12. Business Insurance: Consider getting insurance coverage for the catering business to
protect against potential liabilities and risks.
13. Employer Registration: If they plan to hire employees, they may need to register as
employers and comply with labor laws and regulations.
14. Trademark Registration: If they want to protect their company name or logo, they
may consider registering it as a trademark.
15. Business Plan: Develop a comprehensive business plan that outlines their goals,
target market, marketing strategy, and financial projections.
It's important for Nandi and Patricia to consult with legal and financial professionals or
business advisors who can provide guidance on the specific requirements and
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