Commentary

15.2 The cost and delay involved in formation

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

15.2 The cost and delay involved in formation

| Commentary

15.2 The cost and delay involved in formation

A sole trader business may be established at no or little cost and with little delay. This is because the sole trader need not comply with any formalities before starting to trade. Once the business is up and running, he must observe the various legal requirements of taxing and other governmental authorities, but this observance is in no way a prerequisite to the legal establishment of the business.

The same is true where the proprietors are intending to operate as a general partnership. No formalities are necessary, since the partnership relationship comes into being from the moment that the statutory

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