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Limited Companies

A limited company is a separate legal entity, which is able to enter into contracts in its own name. It is essential as it means that all the company's liabilities are the responsibility of the company - not the directors and shareholders. Limited company is also either incorporated or registered under the laws of the country in which it is situated. One trading option for a business is to operate as a limited company, which will provide access to a number of tax planning strategies and limited liability status. To run the business successfully, you should register company that may be limited or non limited.

The features of a limited company:
  • Since a limited company is a separate person, it can hire 'employees'. These employees are responsible for running of the company, who can be the directors of the company, the secretary as well as the staff including the receptionist.
  • For setting up a limited company, most of the countries require limited company registration. Some countries also identify the minimum number of people, which are required to start a limited company.
  • The laws of limited companies in the almost all the countries specify the use of the word -limited - or -ltd- after the name of the company.
  • During the purchase of the shares, the liability of the shareholders is limited to the amount paid by them.

Limited Companies Advantages
First and foremost, the principal benefit of trading by way of a limited company has always been the limited liability bestowed upon the company-s shareholders and officers. The main benefits of incorporating your business activities in a limited company can be summarized as follows:
  • The company has a legal existence separate from management and its members.
  • Members' liability is limited.
  • The company's name is protected.
  • It has flexible borrowing powers.
  • The company continues despite the death, resignation or bankruptcy of management and members.
  • The interests and obligations of management are defined.
  • Retirement, Appointment, or removal of directors is straightforward.
  • New shareholders and investors can be easily assimilated.
  • Employees can acquire shares.
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