Business Studies

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GCSE

Business in the Real World

Question

Company Incorporation

1 year ago

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Emelia Braun

Why would it be important for a company which is doing well, to be incorporated?

1 Answer

Faraz H Profile Picture
Faraz H Verified Sherpa Tutor ✓

to infinity and beyond!

There are many factors why a company would wish to be incorporated. One of the most important aspects for a growing company is to limit the individual's liability and protecting the owner's personal assets, as the owner and the company are two separate legal entities. Some other reasons could be easy transfer of ownership if the owner wishes to sell the company, better access to funding capital and usually corporation tax benefits.

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