Now, there is one thing that many of us would like to know and that is why limited company formation is known for being much better that sole trader o partnership company formation as well. The answers to this question will be presented in the remainder of this article hence, you better stick around and read it till the very end.
When it comes to limited company formation, if there is one thing that you have to know of, that would be how the key benefits they have lie on the people who take charge in all of the company activities. These days, you should know that is something goes wrong or if you have committed a mistake, you will not be held liable for it. But then again, it will be a different if what you committed is a case of fraud such as you company deciding to do business outside of the scope of registered business or did any business transaction that is considered as illegal by the law, the directors as well as the shareholders of the company will held personally liable through count order. When it comes to partnership type of companies or even sole trader, the thing is that if something goes wrong with it, the parties that are involved with it will be personally help accountable for the mistake committed, excusing no one.
It is also safe to say that limited company formation is a good choice due to the fact that when the director or directors pass away, retire, get sacked or resign as well, the company will still continue to strive, will still continue to exist and will still continue to do business.
The next major benefit regarding limited company formation that we want you to know of is their accessibility to acquire government projects by means of tenders since majority of government projects or even small scale projects are only offered to limited companies for tender since they are asking for both financial stability and credibility as well. Not only that, there goes the fact as well that limited company formation is known for having a much higher marketing company profile that can make it easier for them to sell their company in the near future.
Additionally, with limited company formation, it is easier to get any potential investors to be involve in helping raise their capital funding for the company by issuing shares or even by selling shares rather than coming up with a complicated partnership agreement. For those of you who may be thinking about how such a thing is made possible, well, that is because limited company formation is known for having the transparency and the credibility towards their suppliers, their customers and their investors as well. This and more are the things that you have to learn with regards to limited company formation.