One of the main advantages of a stock company is respect for its business partners. This is due to the amount of share capital at its disposal. It is also worth mentioning the possibility of later selling the company or passing it on to descendants, the fact that as a shareholder you are not liable for any of the company\’s debts, and finally, the legal choice of corporate form.
Disadvantages include the financial and administrative burdens associated with establishing and operating the company, the administrative burden, and the legal obligation to set up a website.
Main advantages of a limited liability company
Securing prestige
[It must be at least SEK 2,000,000.
[Ease of establishment
We can hire a professional company to take care of all the formalities on our behalf.
– Names of company members
– Company name
– Address of registered office
Favorable ownership structure[71]
– Not everything can be traced in the commercial register[81]
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– fungibility (you are not alone in your work, there is always someone of equal ability)
– Not everything is based on one person
– Simple transfer to another owner
– You can buy an already established, so-called “ready-made” company at a discount, or have a so-called “turnkey” professional set it up
or you can buy an already established company at a discount.
– They are only liable up to the amount of the capital balance.
Can choose the form of management
i.e., monistic or dualistic model
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Monistic model – consisting of a board of directors and statutory directors
Dualistic model – consisting of a board of directors and a board of auditors
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The choice of leadership model can greatly aid in success.
Disadvantages of Forming a Limited Liability Company
– Initial capital must be set high, at least 2 million CZK.
– High administrative burden
– Calling general meetings and sending out invitations (more shareholders means more invitations)
– Legally required data boxes
– Legal obligation for website where AGM dates, financial statements must be posted
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