UA Registration Requirements
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Questions and Answers

What is the proactive effect of formality in a company, and when does it begin?

The proactive effect of formality can only begin from the date the company is registered.

Who evaluates the contributions in kind, and under what conditions?

The partners shall evaluate the contributions in kind, and such evaluation shall be checked by a contributions assessor under the conditions laid down in this Uniform Act.

What are the defining characteristics of a corporation or company?

The defining characteristics of a corporation or company are separate legal personality, limited liability of shareholders, shares, and delegated management.

What is the object of a company, and how is it described?

<p>Every company shall have an object which shall constitute the company's activity and which shall be identified and described in the Articles of Association.</p> Signup and view all the answers

What is a requirement for every company, according to Article 20?

<p>Every company shall have a lawful object.</p> Signup and view all the answers

What is required of a company engaged in a regulated activity, according to Article 21?

<p>The company shall comply with the special regulations governing such activity.</p> Signup and view all the answers

What is the role of the board of directors in a company?

<p>The board of directors delegates day-to-day management of the company to executives.</p> Signup and view all the answers

What is the significance of a company's Articles of Association?

<p>The Articles of Association shall make provision for the evaluation of contributions in kind, under the conditions laid down in this Uniform Act.</p> Signup and view all the answers

What is the primary purpose of registration in the TPCPR?

<p>To know the changes that have occurred to the legal capacity of both physical and moral persons.</p> Signup and view all the answers

What is the time frame for physical persons to obtain registration in the trade register?

<p>Within the first one month of commencement of commercial activities.</p> Signup and view all the answers

What documents must be furnished with the application for registration, according to Art 26 of the UA?

<p>A copy of birth certificate, a copy of marriage certificate, resident permit, title deed of the business, and a prior authorization certificate.</p> Signup and view all the answers

Which article of the UA provides that all physical persons who qualify as traders must obtain registration in the trade register?

<p>Art 25 of the UA.</p> Signup and view all the answers

What information must be contained in the application for registration, according to the UA?

<p>The name; domicile of the concerned person; date and place of birth; nationality; the name of the business and the nature and form of activity; date and place of marriage as well as type of marriage and the property option of the marriage.</p> Signup and view all the answers

What is the requirement for registration of companies and other moral persons, according to Art 27 of the UA?

<p>They must register within a month of their formation (signing of their constitution) in the jurisdiction where the head quarter of the company is located.</p> Signup and view all the answers

What is the significance of registration in the TPCPR, particularly for physical persons?

<p>It is essential to know the changes that have occurred to the legal capacity of physical persons.</p> Signup and view all the answers

What is the purpose of Art 26 of the UA, regarding the application for registration?

<p>It provides the documents that must be furnished with the application for registration.</p> Signup and view all the answers

What is one advantage of public corporations in terms of capital?

<p>Greater capital for expansion</p> Signup and view all the answers

How do public corporations affect employment?

<p>Create jobs and increase the standard of living</p> Signup and view all the answers

What is one advantage of economies of scale in public corporations?

<p>Average cost per unit falls</p> Signup and view all the answers

What type of goods and services are provided by public enterprises?

<p>Essential goods and services such as water supply, electricity, health services, and education</p> Signup and view all the answers

What is one advantage of public corporations in terms of resource allocation?

<p>Avoidance of duplication and waste of resources</p> Signup and view all the answers

Why are public corporations considered less exploitative than private enterprises?

<p>Monopoly in the hands of the public sector is less dangerous than in the hands of the private sector</p> Signup and view all the answers

What is one disadvantage of public corporations in terms of management?

<p>Mismanagement is very common</p> Signup and view all the answers

What is one consequence of a lack of competition in public corporations?

<p>Lack of efficiency and poor quality of goods and services</p> Signup and view all the answers

What is the primary purpose of a limited liability company?

<p>To make profits</p> Signup and view all the answers

What is the main characteristic of a limited liability company?

<p>Limited liability of shareholders</p> Signup and view all the answers

What is the minimum number of shareholders required to form a private limited company?

<p>Two</p> Signup and view all the answers

What is the benefit of limited liability in terms of investment?

<p>It encourages investment in life</p> Signup and view all the answers

What happens to the existence of a company if its owners exist or cease to exist?

<p>It remains continuous</p> Signup and view all the answers

What is the implication of limited liability on personal assets?

<p>Safeguards personal assets</p> Signup and view all the answers

What is the significance of limited liability in case of bankruptcy?

<p>It gives advanced knowledge of losses to be incurred</p> Signup and view all the answers

What is the primary difference between a private limited company and a public limited company?

<p>Number of shareholders</p> Signup and view all the answers

What is the primary goal of a public limited company?

<p>to make a profit</p> Signup and view all the answers

Who appoints the board of directors in a public corporation?

<p>the government</p> Signup and view all the answers

How are public corporations typically financed?

<p>through taxes, subventions, and surpluses generated by the corporation</p> Signup and view all the answers

What is the primary aim of a public corporation?

<p>to better off the welfare of the citizens</p> Signup and view all the answers

How are public limited companies formed?

<p>after being given a certificate of incorporation and a certificate of trading by the registrar of company</p> Signup and view all the answers

Who owns public limited companies?

<p>private individuals called shareholders</p> Signup and view all the answers

What is the source of finance for public limited companies?

<p>the sale of shares like debentures</p> Signup and view all the answers

What happens to the profit of a public corporation?

<p>it is used for expansion and employment for the unemployed</p> Signup and view all the answers

Study Notes

Registration of Business

  • An individual or entity must register their business in the Trade and Personal Property Credit Register (TPPCR) if they do not fall into any other category.
  • The aim of registration is to track changes in the legal capacity of physical and moral persons.
  • Article 25 of the UA states that physical persons who qualify as traders must obtain registration within the first month of commercial activity.
  • The application for registration must include:
    • Name and address of the concerned person
    • Date and place of birth
    • Nationality
    • Name and nature of the business
    • Date and place of marriage
    • Property option of the marriage
  • Documents required for registration include:
    • Copy of birth certificate
    • Copy of marriage certificate
    • Resident permit
    • Title deed of the business
    • Prior authorization certificate concerning registration of companies

Registration of Companies

  • Article 27 of the UA states that companies registered under the Uniform Act on Commercial Companies and Economic Interest Group must register within a month of their formation.
  • The proactive effect of registration can only begin from the date the company is registered.
  • Partners must evaluate contributions in kind, which shall be checked by a contributions assessor.
  • The Articles of Association must make provision for the evaluation of contributions in kind.

Definition, Object, and Forms of Commercial Companies

Definition of a Company

  • Article 4 of the OHADA UACCEIG defines a commercial company as an entity formed by two or more persons who agree to assign assets in cash or in kind to an activity for the purpose of sharing profits or benefiting from savings.
  • Defining characteristics of a company include:
    • Separate legal personality
    • Limited liability of shareholders
    • Shares
    • Delegated management

Object of the Company

  • Article 19 states that every company shall have an object that constitutes the company's activity and is identified and described in the Articles of Association.
  • Article 20 states that every company shall have a lawful object.
  • Article 21 states that a company engaged in a regulated activity must comply with the special regulations governing that activity.

Characteristics of a Company

  • Separate legal personality
  • Can enter into contracts, own property, and owe debts on its own name
  • Liability of shareholders is limited
  • Capable of suing or being sued in the court of law on its own name
  • Existence is continuous, regardless of changes in ownership

Limited Liability or Joint Stock Companies

Definition

  • A company where many persons or owners contribute their money in the form of a joint stock of capital assets to be used in generating further wealth.
  • Shareholders have limited liability, and their main aim is to make profits.

Importance of Limited Liability

  • Safeguards personal assets
  • Encourages investment in life
  • Gives advanced knowledge of losses to be incurred in the case of bankruptcy
  • Reduces losses incurred by investors

Types of Limited Liability Companies

  • Private Limited Company (LTD)
  • Public Limited Company

Public Corporations

Advantages

  • Greater capital for expansion
  • Creation of employment
  • Economies of scale are enjoyed
  • Provision of essential goods and services
  • Avoidance of duplication and waste of resources
  • Protection of consumer exploitation by private enterprises

Disadvantages

  • Mismanagement is very common
  • Lack of efficiency
  • Too much political interference in its operations
  • Lack of proper control and auditing
  • Lack of initiative and creativity
  • Bureaucracy

Differences between Public Limited Companies and Public Corporations

  • Ownership
  • Aim/motive
  • Management and control
  • Formation
  • Profit
  • Sources of finance

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Description

This quiz covers the rules for registering businesses and traders under the Unified Act (UA), including the requirements for physical and moral persons. It also explains the importance of registration and the legal capacity of individuals and entities.

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