LEGAL ENTITIES OPERATING IN MAURITIUS AND THE UK
Legal entity means an individual, a partnership or organization that has legal rights and obligations.
A company has limited liability which means personal assets untouched and it can have a separate legal person. There are two types of companies that is a private company and public limited company. Private company means members liability is limited to the number of shares they have in the company whereas a public company means their share can be for sale for the general public and their charge is restricted to the sum unpaid on shares detained by them.
In the UK, there are two common legal entity types that are a subsidiary company and a parent company. A subsidiary company, known as a UK private limited company, is a separate legal entity from the parent company but it is exclusively owned by the parent company. It is liable for UK corporation tax on the profits but it can take benefit of reduced rates of corporation tax depending on the size of profits globally. A UK branch of a parent company, known as a UK branch, means all incomes or losses of the UK institution are combined with those of a foreign parent and all debts and liabilities of the UK institution go to the overseas parent.
In Mauritius, a partnership is an association of two or more people formed for the purpose of carrying on a business. It has also unlimited liability and more people working together with the aim of making a profit. They own a capital and share profit. Its allow sharing of ideas in decision making and gain a greater amount of capital. But conflict makes arise in decision making.
In the UK, a partnership means two or more people carrying on a business with the intention of making income. A partnership is not a separate legal entity but members have the same common view of profit. Each member has to pay tax on their share and must share the responsibility of the business. Their aim is to make more profit in order to get more income.
Ø SOLE TRADERS
In Mauritius, a sole trader is a person who runs an unincorporated business on his or her own. It has unlimited liability and the status of a sole trader is usually used and is ruled by the Code de Commerce. The business name of a sole trader, who has a limitless duty for his liabilities, need to be registered with the Registrar of Companies. An annual return should be submitted to the Commissioner of Income Tax. The advantages are that the proprietor of a business enjoy all the profits and decisions are taken very quickly. On the contrary, wrong decisions can be taken and there may be lack of capital.
In the UK, it is easy to set up as a sole trader, but the person is generally responsible for the business debts and he runs his own business as an individual. The person is a self-employed and gains all the profit of the business. However, the sole trader is responsible for any losses that the business makes.
5.0 CONCLUSION AND RECOMMENDATIONS
To conclude, sources of law are used to rule the country and be able to take actions in cases. The legislation allows the country be ruled by specific code and legal entity allow legal rights and obligations of individual and companies. By choosing Mauritius for a new business it will attract new investors and will increase foreign currency. Companies will get many facilities and cases will be able to judge under a different act of laws. Mauritius need more companies in order to get more income and promote the country to improve the department of events.
Organising an event need preparation and time to organize a successful one. Besides, having the details of the event will allow the event manager to be able to know all the parties involved. Therefore, he will be able to prepare all the contracts needed in order to have an assurance. There should be an allocation of tasks to make the work easily and coordinated. If it is a big event normally there will be a lot of procedures and a contingency plan. By the way, a risk assessment should be done to ensure all the possible risk that can be involved and solutions to be taken.
6.1 MAIN COMPONENTS OF A VALID CONTRACT
The following items are needed to form a valid contract:
Ø Agreement, i.e. offer and acceptance
It can be written or an oral agreement. It means offering something to a person, making an agreement then the person can accept it or not. For example, if a client is offering a job to a supplier then the supplier can accept the job.
It can be a promise or payment in some form. For example, making a contract to promise to pay the loan that had been taken at the bank.
Ø Intention to create legal relations
It involves the readiness of a party to agree to take the legal arrangements which have entered into an agreement. Without this, the parties cannot sue each other and the contract may become a simple promise.
Ø Capacity and Legality
It means a person has legal ability to enter into a contract. For example, the age of maturity of a person and the free of mental illness.
A contract has terms and conditions it includes payment terms, insurance requirements for both client and supplier, health and safety commitment and confidentiality.
6.2 POTENTIAL LIABILITY
Any potential liability may be a tort for any private or civil crimes the law provides monetary compensation to the aggrieved party in terms of remedy. But, tort of strict liability does not need any potential proof for cases. Tort means a type of civil damage or wrong, however, it can be a breach of some independent obligation of a contract, therefore, have an increased to a civil cause of action which will be covered into a compensation.