Introduction
Commercial company has been defined by Article one on Commercial Companies law as the following:
“Commercial company is a contract by which two or more natural or legal persons undertake to share in a project that aims to profit making, by submitting a share of cash or service and sharing in the profit or loss resulted from the project”.
Companies have a very main role in economic development in whole world, and consider the interests of society by taking the responsibility for the impact of their activities and goods.
Sole Trader
What's a sole trader?
It is a type of business entity which legally has no separate existence from its owner; basically it means that the business decisions are being made by one person (the owner) and he use his own personal capital to start his own business. It doesn't necessarily mean that the owner run all the business. The sole trader (owner) can employ others to do any of the work in the business . The sole trader is the simplest business to start with because it consists of only one person, and has very little legal formalities, obligations or constraints attached to this form ownership as opposed to other forms .
Management and raising finance:
1. The owner will make all the orders and decisions on how to manage and control his business.
2. The owner increases money for the business out of his own income and/or with loans from banks or other lenders .
Profits:
Any profits from the business will go to the owner.
Liability:
As a sole trader, the owner is the only one who’s responsible for any debts run up by his business. This means his home or other properties may be at risk if his business runs into trouble . Which mean that the owner “as a sole trader” ...