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. In this modern age that we are in, if you have committed a mistake, you will not be held liable for it. Meanwhile, if what happened is that the company committed fraud due to it deciding to do business outside the scope of registered business or do any business transaction that is considered illegal, the shareholders and also, the directors will be personally held accountable for it through count order. On the contrary of it, with regards to sole trader or partnership type of companies, if anything goes wrong, all the parties that are involved in the company will be held personally liable for the case, without any exemption.
In limited company formation, if it happens that the directors were to resign, pass away, retire or get sacked, there will be no problem since the company will still continue to function to exist and to do business as well.
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.
Moreover, it has been said as well that through limited company formation, it is much easier to involve prospect investors to help in raising capital funds for the company by means of selling shares or issuing shares to them rather than coming up with a much more complicated and complex 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. All in all, limited company formation carries a wide range of benefits that sole trader and partnership companies do not possess.