Proprietary Limited

Pty Ltd

A company that cannot have more than 50 shareholders and are restricted in the number of overall shares: hence the name. Such companies also have restrictions on how they operate and conduct themselves financially. Public Companies are basically the opposite type of business in that they can have an infinite number of shareholders and issue shares without restriction to anyone. The purpose of Pty Ltd companies is to allow the owners limited liability to the legal and financial losses of their business. In other words, they are not infinitely accountable for their business's losses with their own personal assets. Public Companies allow this for their shareholders as well but with a Pty Ltd company, the owners have the benefit of nearly the same degree of personal ownership and control as with a liability unlimited business structure such a Sole Proprietorship or Partnership. The greater restrictions on Pty Ltd companies financial structures is to offset the high level of control (and thus personal profit) coupled with their limited personal exposure to their company's failures. The regulations prevent the owners of Pty Ltd companies from exploiting their limited personal liability through irresponsible business practices.

Re: HOW TO TRANSFER LAND TITLE TO HEIRS on Fri Apr 30, 2010 10:41 pm
moderator Posts: 240 Join date: 06/09/2008 You need to go to a lawyer to prepare a document called extra judicial settlement of the estate of the deceased which shall be signed by all the heirs of the decedent. After which, taxes..which by law is called ESTATE TAX will have to be paid....oh this is already 5 years..im certain that the BIR will imposed a penalty for late filing of this kind of tax,which under normal circumstance should have been paid 6 months after the death of the decedents. Then after payment of taxes the BIR will issue a Certificate Authorizing Registration. At the sime time you will be required to publish the fact of extra-judicial settlement of estate in a news paper of general circulation. then all of the docs will be registered to the registry of deeds where the decedent resides.

Is it possible for the surviving heirs to just appoint an administrator? We heard that it's simpler than transferring the transfer to all the heirs. Is this true, and will this entail additional cost, like paying donor's tax on top of the estate tax?attyLLL moderator Posts: 16247 12/04/2010 Location: attylllaw @ gmail . com if the transfer is to be done by book, each of the estates of the dead persons has to be settled, with estate taxes and penalties, if applicable, paid. I concur with admiral that the best way to do this will be to execute extrajudicial settlement of the estates of the deceased persons. the end result should be the title will be in the names of the 3 surviving children, and the surviving grandchildren whose parents died. if the grandchildren are minors, their share can be registered and held in trust by their guardian until they reach 18. i do not know what kind of administrator you are referring to. if you filed a petition in court to settle these estates, an administrator of the property will appointed and he has authority to sell the property.

in the extra-judicial settlement, the heirs may also name a trustee in whose name the property will be registered. the heirs may also execute a Special Power of Attorney to sell the property for them. there should be no donor's taxes to appoint an administrator. be careful, if you donate the property, the donee becomes the absolute owner of the property.