Registered companies in my country, there are two main types of organization, one is a limited liability company, the other is a limited liability company, among which there is a special one-person limited liability company in the limited liability company. In general, these It is the organizational form of the company registration type. There are also partnerships, limited partnerships, etc., in the form of enterprises. Generally speaking, there are more. But today, the editor mainly introduces to you the advantages and disadvantages of a limited liability company, let’s take a look.
1. Advantages of a limited liability company
1. Lower risk
A limited liability company can have up to 200 shareholders, which is relatively safer and can share individuals Investor's risk.
2. It is easy to raise funds
Co., Ltd. can obtain a large amount of idle funds by issuing stocks and going public, and it is easy to form larger funds, which is conducive to the growth of the company.
3. Strong consistency
Whether it is a major shareholder or a small shareholder of the company, the essence is to make money, so the goal is to make profits through the company, which is conducive to the company's decision-making optimization.
4. Perfect company structure
Generally speaking, a joint-stock limited liability company has a sound corporate management organization, with the rules of the board of directors, supervisors, and shareholders meeting. The company uses directors and managers as management personnel. The core management organization manages the company's production and operation, while the minority shareholders only receive the company's dividends and do not participate in the company's operations. Relatively speaking, the company's operation and management are more favorable.
2. Disadvantages of a limited liability company
1. Complicated establishment
The establishment of a limited liability company is relatively more complicated, and its procedures are more stringent, and the requirements for various aspects are also more complicated. high.
2. Poor flexibility
The scale of the company is relatively large, and the number of departments and personnel in its own company are relatively large.The company's work processes, rules and regulations are more complicated, and the company's decision-making flexibility and company's work efficiency are also lower.
3. Equity dispersion
The equity of a limited liability company is relatively dispersed and can be transferred at will, which leads to the lack of cohesion and responsibility for the company by most small and medium shareholders. The situation will easily lead to the company’s leadership replacement.
4. It is not conducive to protecting small and medium investors.
Joint-stock companies have many shareholders and diversified share capital, but the decision-making principle of capital majority decision cannot be avoided. There are also situations where the company is manipulated and controlled by large shareholders, thereby harming the interests of small shareholders.
The above is an analysis of the advantages and disadvantages of a company limited by shares. The editor here recommends that for start-up business friends, choose a limited liability company. A limited liability company is more suitable for companies that have grown to a certain extent. , The start is relatively high.
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