Complications - A company has to maintain certain registers, like register of members, register of directors and secretary, register of charge, etc. There are various meetings in the operation of a company, e.g. annual general meeting, extraordinary general meeting, and board of directors meeting. The company has to keep minutes of meetings. There are also different resolutions. It is necessary for an investor to get some knowledge of all these concepts when he uses the device of a company for trading.

Cessation of business - Normally a company can only be closed by way of liquidation. A liquidator has to be appointed to realise the assets of the company and distribute dividends to creditors and shareholders. Where the company is solvent, the company can be closed by way of members voluntary winding up. If it is insolvent, the proper mechanism for closing a company would be creditors voluntary winding up and compulsory winding up. The procedure itself is complicated and expensive. Quite often it is required to appoint a solicitors or accountancy firm to handle the process. The costs of liquidation for even a "simple" company would be more than $10,000.

Taxation - The profits tax rate for a company is 17.5% which is slightly higher than that (16%) for sole proprietorship and partnership. Nevertheless, as a lot of expenses of a company are tax deductible, e.g. directors' remuneration, so even the tax rate is relatively high, it may not really be a disadvantage to a private limited company.

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