Target Audience: 😋
🔴Limited Company🔴: Suitable for expanding businesses or attracting new investors, especially in high-risk industries.
🟡Unlimited Company🟡: Suitable for small-scale business operations that do not involve high-risk industries.
Responsibility Scope: 👥
🔴Limited Company🔴: Shareholders of a limited company have limited liability. Generally, their responsibility is limited to the issued shares. If the company has debt issues, shareholders' personal assets are usually not affected.
Shareholders of an unlimited company have unlimited liability. This means their personal assets may be affected if the company is unable to repay its debts.
Legal Status: 📝
🔴Limited Company🔴: A limited company has a separate legal entity and can enter into contracts, own assets, and engage in legal proceedings in the company's name.
An unlimited company does not have a separate legal entity. It is jointly owned by the proprietor(s) or partners in their personal capacity, and contracts cannot be signed in the company's name.
🔴Limited Company🔴: Maintaining a limited company involves more complex procedures. It requires compliance with the company's articles of association. For example, a limited company needs to appoint a company secretary, submit regular filings, update company registration and business registration information, and prepare financial statements for auditing.
The maintenance procedures for an unlimited company are relatively simple. It only requires filling out business registration forms, updating business registration information, and submitting income tax returns.
If you have any tax-related questions, feel free to ask us! 📞