A company is like a big team that does business. It's like a separate person, different from the people who own it. This is good because it protects the owners' personal things if something goes wrong.
In a corporation, there are owners called shareholders. They vote to choose a group of leaders called the board of directors. These directors make important decisions and make sure the business runs smoothly. Sometimes, they hire a management team to help.
Every owner has a share in the company, like a piece of a pie. The more shares you have, the more of the company you own. It's easy to buy or sell these shares, so ownership can change easily. This is helpful for the business to keep going for a long time.
Becoming a company has several advantages, such as limited personal liability, easy transfer of ownership, business continuity, improved access to capital, and, depending on the corporation structure, potential tax benefits. The legal structure of your corporation and the benefits it provides will depend on how your company is set up according to the Companies Act of 2063.
1. Limited personal liability protection
2. Business security and continuity
3. Improved access to capital
4. Potential tax benefits
Guide:
How to Register a Company in Nepal