Establishment of A Company Abroad

The legal concept described here is the foundation of corporate structure, where a company is considered a separate legal entity from its founders. This means that the company can own assets, incur debts, and enter into contracts independently of its owners. As a result, the owners' liability is limited to their investment in the company, and they are not personally responsible for the company's debts.

In this setup, the company's owners hold ownership rights through share certificates, which document their ownership and define their relationship with the company. The owners appoint a Director to manage the company's affairs and make decisions on its behalf. The company also has a management team responsible for its day-to-day operations.

However, there are exceptions to limited liability, such as cases of fraud or misconduct by shareholders. In such cases, the court may "pierce the corporate veil" and hold shareholders personally liable for the company's debts.

The term "offshore" refers to the establishment of a company in a country other than the one where it conducts its business. This is often done for tax reasons, as offshore companies can benefit from tax advantages in the country of incorporation.

The primary objective of any company is to maximize profits for its shareholders, unless there is a conflict of interest. However, there are alternative models where companies are expected to consider the interests of all stakeholders, including employees, suppliers, and the community.

Key positions in a company include shareholders, who own the company; directors, who manage its affairs; and management, who run its day-to-day operations.