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Liability limited to the
capital subscribed. |
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Personal assets are safe from creditors. |
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Pay less tax than an employee for a given level of
income. |
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Taxed from start of only 10% and 20% for small
companies. |
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Capital can be accumulated within low tax environment. |
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An extremely tax efficient way of saving. |
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No National Insurance payable on dividends. |
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Special benefits: cars, medical insurance, mobile phones
up to second home or yacht . |
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Mergers and acquisition: Capital acquired from
public stock can be used to grow through acquisitions. |
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Prestige and trust through higher visibility with
financial institutions, suppliers, customers and
employees. |
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Increased personal wealth. |
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Estate planning opportunities. |
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Reduced underwriter requirements: it can be a
significant factor then attracting an investment or
offering. |
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Liquidity. |
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Reduced business requirements: The lack of an
earnings history can be avoided. |
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Incentives: Stock options can attract professional
management and valuable employees. |
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Capital formation: Raising capital will raise a
liquidity for the investors. |
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Higher valuations. |