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 will be answering this question as we go along our topic of discussion here in this article therefore, if you are interested to know more about it, better read it till the end.
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. 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. 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. 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.
There are other good things that come from limited company formation such as its accessibility to acquiring government projects through tenders, since almost all projects of the government and even some large scale projects only opened to limited companies to tender since they are requiring credibility and financial stability as well. In addition to that, we want you to know as well that limited company formation has a higher marketing company profile in comparison to sole trader and partnership type of companies, thus selling the company in the future is much easier for them.
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. 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.