LAQC

A loss attributing qualifying company (LAQC) is simply a normal company that has elected to be an LAQC with Inland Revenue Department. IRD has the following criteria for becoming an LAQC:

• Must not be a foreign company;
• Must have fewer than 5 shareholders;
• All shareholders and directors must have elected that the company become an LAQC and not have revoked this status;
• The directors must have elected to become personally liable for their share of any income tax not paid by the company (herein lies quite a big difference between regular companies and LAQCs);
• All shares in the company must carry the same rights

We only make sure that the company can pass the above criteria. The actual LAQC election will have to be done by the shareholders and directors.