With the development of society, our lives are getting better and better. Some people have opened their own companies, but they usually register a limited liability company. Why do we need to add the word "limited" in front of the company's name? ? In fact, the main purpose is to avoid taking on greater responsibilities and effectively protect the company. Next, I will explain it in detail. 1. To avoid taking on huge responsibilities.
The companies registered now are basically limited liability companies, and have a clear registered capital. The reason for doing this is to avoid taking on large responsibilities. For example, a company with a registered capital of 1 million will bear 3 million in debt without a limited liability company. When the company's registered capital is all used up, shareholders and legal persons may still have to bear a debt of 2 million. However, if a limited liability company is registered, they only need to pay off 1 million before filing for bankruptcy. Therefore, many people register like this The company is trying to avoid similar responsibilities. 2. This is actually protecting the enterprise.
The establishment of an enterprise will bring many benefits. First of all, it will bring employment opportunities. A small company will recruit a few people, and a large company may recruit hundreds of people, which will bring a lot of employment to the local area. Employment can in turn bring a certain amount of consumption, so we must encourage the establishment of enterprises. If you start a business and bear millions of debts due to poor management, you will not only have to bear the debt registered in the registered capital, but also additional liabilities. The person who started the company may never be able to repay the millions of debts, and this will also discourage many people who want to start a business, so this measure is actually protecting the company. All in all, adding the word "limited" in front of the company's name is actually avoiding some unnecessary responsibilities. If a company assumes a debt of 3 million, the company is a limited liability company and can bear the limited registered capital. Responsibility, otherwise you will have to bear full responsibility. This is also protecting the enterprise.