Question 3
3.1. We as ProBio Innovations is operating as a private company. Each of us are responsible for own
assets,debt and liability. (Willy Hannes Engelbrecht, 2021, p. 48)
3.2.) As mentioned previously, we are a private company. Our company operates on a private
company basis. We consists of 4 members. Although we may not transfer any shares to the
public,our liabilities and assets are protected, so in the event of loss or unforeseen circumstanes
each shareholder is liable for their own actions and payments. When it comes to flexibility we are
more flexible in terms of operations and decision-making process than that of a public company as
we are not obligated to the reporting standards as well as regulatory regulations like annual or
quarterly reports (Willy Hannes Engelbrecht, 2021, p. 48). In the event of the retirement ,departure
or death of any of the shareholders there will not affect the continuity of Pro. The same a public
pharmaceutical company operations is the same way Probiotics operates in terms of marketing
research and development of new products and clinical trials.We have taxation benefits.which can
help us greatly.Our personal income can be in the form of profits as we can avoid double taxation.(
https://www.shopify.com/za/blog/llc-advantages)
3.3) In order to protect intellectual property when establishing a Pharmaceutical Company in South
Africa one must comply with certain rules and regulations such as licences and patents. These
include patents, imports and export licenses, pharmaceutical manufacturing licences, wholesale
distribution license, good manufacturing practice certification, intellectual property licenses and
healthcare professional licenses.
Patents:In order to protect the intellectual property of Probiotics we will have to register with the
CIPC (Register a patent | South African Government (www.gov.za))
Import and export licenses:We plan on exporting and importing our product internationally and we
will need licenses and approval from SARS Import permit for general goods | South African
Government (www.gov.za)
Pharmaceutical manufacturing licenses:This is regulated by the South African Health Products
Regulatory Authority which will allow us to manufacture Probiotics in South Africa.The SAHPRA also
overseas the wholesale distribution Licenses as well as Good Manufacturing Licenses Certification.
SAHPRA - Licences and Permits
Intellectual Property Licenses:This will protect anytechnologies,patents,licenses,trademarks or
research done from theft from other companiesWhat Is Intellectual Property, and What Are Some
Types? (investopedia.com).