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. We suggest that you read this article until the last as we will be providing here the answer to the question that was raised above.
One thing that we want you to be aware of regarding limited company formation is the fact that the key benefits of it lie on the people who are in charge of all the activities relevant to the company. In this present day and time that we live in, if something were to go wrong, you will not be held accountable for it. On the other hand, if it is a case of fraud in which your company decides to do any business transactions that are considered illegal by the law or do business outside the scope of registered business, both the directors and the shareholders will be help liable personally by the court 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.
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.
Another benefit that we want to introduce to you regarding limited company formation is its accessibility when it comes to acquiring projects from the government through tender since some large scale project or even government projects are only open to limited companies as they are requiring 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. This has been made possible due to the fact that they have more credibility as well as transparency towards the investors, the suppliers as well as the customers. This and more are the things that you have to learn with regards to limited company formation.