Question

John is a talented mechanic who operates his own Repair Garage in Black River, St. Elizabeth. John is quite talented and as a result his clientele has expanded, and the garage has been doing well. Due to the success of his garage, John has now decided to expand his business by also selling used and new car parts and he wants to form a company for this new venture.

Advise John on the appropriate type of company that he should form for his business. State the documents that John will need to file with the Registrar for the incorporation of the company and briefly describe the importance of each. Advise John on the other services which are crucial to the company’s operation and which are obtained upon incorporation as well as the agencies for which information is collected. State the document that John will receive from the Registrar once the company is properly incorporated and briefly describe its significance.


John is considering a name for his company. Advise him on what, if any problems, that will arise with use of the following names. If any of the names can be made acceptable without applying to any third parties, explain what he would need to do.

(i) John’s Royal Garage Limited

(ii) John’s Best National Garage of Jamaica


Guide to Answering Part (a)- (which must be done in an essay format)

Tell John which one of the four (4) types of company under the Companies Act, 2004 would be most suitable for his business e.g., private company limited by shares, private company limited by guarantee with a share capital or other AND briefly explain why .

Answer 1

John should form a private company limited by shares for his business expansion. He needs to file documents such as Memorandum of Association, Articles of Association, and Declaration of Compliance with the Registrar. A Certificate of Incorporation will be received once the company is properly incorporated.

Step-by-step explanation:

The most suitable type of company for John's business would be a private company limited by shares under the Companies Act, 2004. This type of company allows for the selling of shares to raise revenues and expand the business.

John will need to file the following documents with the Registrar for the incorporation of the company:

1. Memorandum of Association: This document outlines the company's objectives, name, registered office, and details of its members.
2. Articles of Association: This document sets out the rules and regulations for the company's internal management and operation.
3. Declaration of Compliance: This document confirms that all legal requirements for incorporation have been met.

Once the company is properly incorporated, John will receive a Certificate of Incorporation from the Registrar. This document signifies that the company is a legal entity and has been registered with the government.

The name 'John’s Royal Garage Limited' may face problems if there are already existing companies with similar names or if it infringes on any trademarks. John should conduct a search to ensure the name is available before proceeding. The name 'John’s Best National Garage of Jamaica' may also face issues if it includes the term 'national' without proper authorization.

If any of the names can be made acceptable without applying to any third parties, John would need to reserve the name with the Registrar and include it in the incorporation documents.