Advantages and disadvantages of Incorporation


*Separate legal entity and related limited liability and capacity to sue.

*Perpetual succession

*Affords protection of personal assets

*Reduced tax exposure and scope for tax deferral

*Favorable pension provisions

*Easier access to capital

*Enhanced credibility

*Superior business name protection

*Easier transfer of ownership

*Scope for income splitting

*Creation of a director’s current account on transfer-in of assets


*Additional regulatory requirements and associated cost

*Increased corporate disclosure and related lack of privacy

*Additional tax requirements and potential double taxation exposure

*Significant director’s responsibility

*Detailed winding-up provisions


To discuss the implication of incorporation on your business plans, contact