Under the Business Registration Act, "business" includes every form of trade, commerce, craftsmanship, calling, profession and any activity carried on for the purposes of gain, but does not include any office, employment or occupation, or any of the businesses specified in Q2 above.
A business firm is either a Sole Proprietorship or a Partnership. Individuals and companies, being "legal persons", may set up and own a business firm. A business firm, not being a legal entity, cannot register another business firm.
A foreign company also cannot register a business firm unless it has registered itself under the Companies Act.
Q4. What is a Sole Proprietorship?
A Sole Proprietorship is a business firm owned by one person or one company. There are no partners. The sole-proprietor has absolute say in the running of the business firm.
Q5. What is a Partnership?
A Partnership may have between two and twenty partners. Once there are more than twenty partners, the business entity must be registered as a company under the Companies Act, Cap.50.
Q6. What is Limited Liability Partnership (LLP)?
LLP is a new form of business entity created to meet the growing dynamism of today's business environment. LLP allows for the flexibility of partnership or sole proprietorship and also enjoys the limited liability of a company.
