Swiftreg Unclaimed

When you run a business, you are taking a risk. You will probably be loaning money from a bank or another institution to get you started. No-one lends money without expecting to get it back with interest. Now if your business fails and you can not pay the money back its very likely that the money lender will try to find ways of getting their money back. How he does this may vary depending on what you signed and what you promised to do. Now if you are not registered as a company, you would have loaned the money in your own name, and are subsequently more responsible for the debt. The lender then could try to get the court to force you to sell your house and other assets to pay back the debt. You will have no protection under the company act as you did not register a company. Now if you have completed Company Registration, and you loaned it in the name of your PTY, then there is more protection. The directors or shareholder could still be held responsible for the debt, however, but it does mean that the law sees the PTY as a legal entity, so their case is against a company, not against you. The fact that you registered your company could be a life saver.