Business law Essay Example | Topics and Well Written Essays - 2000 words - 9

Business law - Essay Example This encourages investors and this factor has also contributed to the growth of business sector throughout the world for large scale productions and distribution (Cartwright, 2008). As far as business standing in Ireland is concern, a sole proprietor is not strong financially comparing to a private limited company. Investors even seek such corporate bodies to lend money because they have published financial statements. If we compare Private Company with Sole Proprietor, we have more member than that of the Sole Proprietor; this means that we have better credit standing as well as better funding of the capital. It also enhances the stability in business. Directors of the company are accountable to the owners and the administration of the company with regards to the company and statutory books and management as it is stated in the articles of association. This enhances the formality in the role of the director. Control and management over a limited company are exercised by the board of directors, who in turn delegate many of their functions to other managers. Directors are selected by the members of the company and are also removable on valid grounds. Irish companies enjoys the lowest corporate taxes i.e. a universal rate of 12.5% on trading profits while some companies which meet certain requirements are taxed at 0%. This is one of the major advantages enjoyed by the companies situated in Ireland (Company Formations in Ireland). In addition to this, Irish companies also enjoy an extensive network of double taxation treaties. It means the imposition of the tax on the same income in two different countries. It can be evaded due to such treaties. The formation of a company involves very complex procedures. The setting up cost is also very high i.e. â‚ ¬300-â‚ ¬500 as compared to sole proprietor and partnership businesses. While the other types of businesses such as Partnership and Sole Proprietor can be brought into existence without reference to