WORLDWIDE: UNITED KINGDOM: THE RIGHT FORM OF FORMATION
LIMITED COMPANY ADVANTAGES:
bullet Liability limited to the capital subscribed.
bullet Personal assets are safe from creditors.
bullet Pay less tax than an employee for a given level of income.
bullet Taxed from start of only 10% and 20% for small companies.
bullet Capital can be accumulated within low tax environment.
bullet An extremely tax efficient way of saving.
bullet No National Insurance payable on dividends.
bullet Special benefits: cars, medical insurance, mobile phones up to second home or yacht .

PUBLICLY TRADED COMPANY (PLC) ADVANTAGES (in addition to the advantages of the Limited Company):
bullet Mergers and acquisition: Capital acquired from public stock can be used to grow through acquisitions.
bullet Prestige and trust through higher visibility with financial institutions, suppliers, customers and employees.
bullet Increased personal wealth.
bullet Estate planning opportunities.
bullet Reduced underwriter requirements: it can be a significant factor then attracting an investment or offering.
bullet Liquidity.
bullet Reduced business requirements: The lack of an earnings history can be avoided.
bullet Incentives: Stock options can attract professional management and valuable employees.
bullet Capital formation: Raising capital will raise a liquidity for the investors.
bullet Higher valuations.

 
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