The main reason for opening a limited company is to provide more financial and legal protection, which in turn reduces personal risks and liabilities. Here are a few of the benefits of opening a limited company:
1. Limited Liability: A limited company is a separate legal entity that separates financial liabilities and risks between individuals and companies by forming a company. Therefore, if the company has a debt problem, only the company’s assets will be lost, and personal property will not be affected.
2. Fundraising: A limited company can issue shares or other securities to investors to raise funds to expand the scale of the business and improve its capital strength.
3. Tax incentives: Limited companies can enjoy tax incentives, such as corporate income tax exemptions and other policies.
4. Corporate image: A limited company usually has a more reputable and professional image than an individual business, which in turn enhances the competitiveness of the enterprise in the market.
5. Growth potential: The company’s organizational structure and management style are relatively mature and stable, and it is better able to cope with business expansion and growth.
Combining the above points, setting up a limited company can provide more development opportunities and better legal protection for businesses, so if you have a larger business plan and idea, considering opening a limited company is an option worth considering.
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