What are the advantages of a Company?
Following are the advantages of a Company:-
• Liability of the Members’ (the directors and shareholders) is limited to the amount of money they have paid for shares, thus Stakeholders are not typically liable for corporate debts and liabilities.
• Extra capital can be raised by selling shares either privately or in the market. Members can leave or join without any restriction.
• The death, bankruptcy or withdrawal of capital by one member does not affect the company’s ability to trade.
• The disposal of the whole or part of the business is easily arranged.
• Enjoys high credibility as the books of accounts and other documents are available for public vigilance.
• ESOPs, sweat equity and other incentives can be issued, which help attract and attain best of talents.
• Overall transparency at various levels.