Creation
LLC
The LLC is a legal form of a limited liability commercial company formed by a minimum of two partners (or by a single partner when it takes the form of a singlemember LLC). Known for its accessible operation, the LLC (Limited Liability Company) is a type of company whose characteristics and advantages still attract many entrepreneurs eager to realize their entrepreneurial project. However, before you embark on creating an LLC, it is important that you understand the definition of an LLC and the main characteristics of this type of company.
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Summary
1. DEFINATION OF LLC
2. OPERATION OF LLC
3. ADVANTAGES OF LLC
4. DISADVANTAGES OF LLC
5. STEPS TO CREATE AN LLC
6. EXPERT'S OPINION
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DEFINATION OF LLC ?
An LLC is a legal form of a company where the liability of the partners is limited to their contributions (hence its name). In other words, it is a form of commercial company that allows partners to limit their liability to the amount of their contributions.
Comprising a minimum of two partners and a maximum of 100, the partners can be individuals or legal entities, regardless of their marital status. They are simply required to make a contribution to the social capital. Social capital is therefore mandatory to create an LLC, but no minimum is set by law. The social capital is divided into social shares among the partners, in proportion to their contributions.
OPERATION OF LLC
PARTNER OF LLC
There are almost no restrictions on becoming a partner in an LLC, only that the partners of the LLC must be motivated by "affection societies", which corresponds to the willingness of each partner to join together to work together, in a common interest, and on an equal footing.
The following can access this form of company:
Regarding the social capital, any contribution in cash, in kind, or in industry is taken into account.
MANAGEMENT OF LLC
An LLC must have a manager, responsible for legally representing it. It is also possible to appoint multiple managers. The manager of an LLC must be a natural person, whether or not they are a partner in the company.
The operating procedures for the position of manager are largely defined by the LLC's partners. This includes:
DISADVANTAGES OF AN LLC
The rigidity of the company's operation: the operating rules are strictly regulated by law. The partners have very little freedom to define the management rules for their company, for fear of violating the law.
The manager of an LLC must be a natural person; it is inconceivable to assign the management of the company to a legal entity.
The partners of the LLC are only liable up to the limit of their contributions.
Therefore, in the event of company difficulties, the creditor can only pursue the partner who is in debt up to the amount of their contribution and cannot touch the partner's personal assets.
ADVANTAGES OF AN LLC
- Creating an LLC means adopting a legal form that allows you to limit your liability to the amount of your contributions. Therefore, if the company encounters difficulties, your risk is limited to the loss of your contributions (provided you have not committed any faults or crimes). In principle, professional creditors cannot personally pursue you for payment of the company's debts.
- Entrepreneurs who decide to create an LLC have the option of appointing multiple managers, which can be very useful for certain business creation projects. For example, when two people form an LLC to work together in their business, they may need to both hold managerial roles. The operation of the management team must then be clearly defined in the LLC's bylaws.
- Creating an LLC to protect the partners because the operating rules are directly established by the laws and the LLC's bylaws, which can rarely be deviated from. This allows the partners to operate within a secure legal framework.
- In an LLC, the social capital is freely set. There is no need for a large budget to create this type of company. The law imposes no minimum requirement for the social capital of LLCs; it is only mandatory to have social capital. There is also no maximum threshold.
- Creating an LLC allows the spouse of the majority owner to benefit from the status of a collaborating spouse, provided that the company's workforce does not exceed 20 employees.
This status allows the spouse to:
- Participate in the company's activities,
- Enjoy complete social protection without being paid,
- Perform, on behalf of the business owner, all administrative acts related to the
operation of the business.
The spouse of the majority owner of an LLC can also hold a position under an employment contract or serve as a manager.
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STEPS TO CREATE AN LLC
1. DRAFTING OF DOCUMENTS
The first step in creating a company is, of course, the drafting of documents. This step is very important because it will help identify the company you want to create among others. It involves providing certain information such as the company's name, the amount of social capital, its legal form, its registered office, the duration of the company's existence, its corporate purpose, the valuation of each contribution, the number and distribution of social shares among the partners, and the mention of the deposit of funds corresponding to cash contributions and the closing date of the financial year, etc.
Drafting documents is about giving your company an identity. Although it is not a legal requirement, it is highly recommended to seek the services of an expert to successfully complete this initial step, as poorly drafted documents may render their registration invalid. DELEKY'S experts are here to assist you in this essential phase of creating your business. So, do not hesitate to contact us.
2. REGISTRATION OFDOCUMENTS
The competent authority for registering documents for the creation of businesses in the Abidjan area is the Single Window Service of the Investment Promotion Center in Côte d'Ivoire (CEPICI).
For companies whose registered office is not in the Abidjan area, the registration of documents will be done at the tax offices in the locality of the registered office. The documents, once drafted and signed, will be legally valid only if they are properly registered. Therefore, it is important to entrust the registration process to an expert. DELEKY'S has a team within its ranks to assist you with this.
3. UPLOADING OF DOCUMENTS
The procedure for business creation continues with the uploading of registered documents, which is done on the official website of CEPICI and is mandatory to finalize the business creation process. This is a very important step, and it would be wise to seek the guidance of an expert. DELEKY'S Sarl is equipped to assist you in uploading your documents.
4. RECEIPT OF DOCUMENTS
This is the final step. At this stage, the user must receive the documents that certify the completion of the business creation process. These documents include the certificate of incorporation, the IDU certificate, and the RCCM (Trade and Personal Property Credit Register) if the registered office is within the jurisdiction of the Commercial Court of Abidjan.
EXPERT'SOPINION
The LLC is an interesting form that offers some significant advantages, but we cannot assert that it is the most suitable form for creating a business, whether alone or with others. The choice of legal status depends on many factors. A consultation with a professional can be helpful to confirm your choices and be directed towards other options that may be more in line with your project
However, the LLC is suitable for entrepreneurs with a small budget who want to start a business.
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