Overview
Documents
Benefits
Aspects | Merits | Demerits |
Legal entity | The separate legal entity from the owner, personal assets are not at risk. | Restrictions on activities. |
Ownership | Owned and managed by a single person, with complete control over operations. | Difficulty raising funds or attracting investors. |
Limited Liability | Liability is limited to the extent of shareholding, not personally liable for losses beyond investment. | A personal guarantee may be required for loans, putting personal assets at risk. |
Compliance | Fewer compliance requirements can focus on running the business. | Required to maintain records and file annual returns, may be time-consuming. |
Taxation | Taxed at the same rate as other companies, can take advantage of tax benefits. | Owner may not be able to take advantage of certain individual tax benefits. |
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