Running a company comes with record keeping requirements, registration and licensing obligations and other administrative matters which must be managed. Annual fees are also payable.

The company must follow the rules of incorporation to preserve its separation from its shareholders. For example, keeping financial activities of the company separate from its owners, entering into contracts in the name of the company, making it clear to third parties that each founder is a shareholder/director/officer of a company (and is not acting as a stand-alone individual). You should open bank accounts in the name of the company and use those accounts (rather than personal accounts) for all payments made by or to the company.

The concept of limited liability applies to your shareholding in your company but it does not extend to your position as a director of that company. A director owes a number of duties to the company and its creditors. Good corporate governance is essential to ensure that the company is operated with appropriate systems and controls which allow directors to fulfill those duties.