A limited company: the most popular business structure. Why?
January 22, 2016
Legally speaking such company is a structure which exists independently from its owners (shareholders) and acts as a separate legal entity. The entity is legally and financially separated from an individual or group of people owning it which makes this type of business structure so attractive.
A limited company carries out financial activity on its own name; moreover all the debts and liabilities are secured by company’s assets. In case of bankruptcy process owners will not be drawn into an abyss of debt as their liability is limited by the amount of shares they hold. Don’t be blinded and think that with a limited company you are free in your decisions and keeping your assets, and have a life-long protection in whatever you do. As an individual you are responsible to the society for ongoing activities.
There are some other strong reasons to set up a limited offshore company. This type of business structure is often used by partners who aim to realize their mutual commercial idea. Issued shares allow businessmen to be owners of the company, to take tactical, strategic and financial decisions and to get profit.
Setting up a limited company may seem to be a complicated task but in fact it is as easy as setting up a sole property. In some cases the time of company’s incorporation may take no more than 1-2 days. It is also worth attention that the limited company may be incorporated in any country of the world. OFCs (offshore financial centers) are the most demanded destinations for companies’ setup. The reason is that business owners take advantage of serious benefits which otherwise they would not get.
Of course the incorporation process is not the same in all the countries as there are some specific requirements that should be met. Nevertheless, offshore countries tend to make the procedure as easy as possible in order to attract more foreign investors. In order to decide in which jurisdiction it is better to start the incorporation process it would be reasonable to turn to a reliable financial service provider who has extended experience in the field.
Most of the largest global corporations including some private companies are limited. To find out whether the company is limited just look at the suffix in its name. If the company’s name includes such suffixes: Ltd, Corp, LLC, Inc, SARL, AS, SA, SL, GMBH, BV, GesMBH, AG – then it is a limited business structure. Any of these suffixes shows that that the company has a separate legal performance. If you pay attention to official names of companies, you meet in your life, you will understand that the vast majority of them have the separate legal standing.