company law 1公司法HND.doc

To: Charles Prospect From: Wang Ning Subject: Analysis on how to building a company Time: October 10th Thanks for you give me this chance to explain setting up a company. I will respectively explain what is company, the nature of company and registering a company. 1) Form this case, Bean Co need setting up company. A company is an association or collection of individuals, whether natural persons, legal persons, or a mixture of both. Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals. Company have two types: Private Limited Companies and Public limited company. A limited company is a company in which the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. The former may be further divided into public companies and private companies. Who may become a member of a private limited company is restricted by law and by the companys rules. In contrast, anyone may buy shares in a public limited company. A public limited company is a type of public company under United Kingdom company law, some Commonwealth jurisdictions, and the Republic of Ireland. It is a limited liability company whose shares may be freely sold and traded to the public. Advantages of company: 1. Limited liability: Limited liability is where a persons financial liability is limited to a fixed sum. One of the most obvious differences between the company and other forms of business organization is that the members of both private and public companies have limited liability. But the company need do legal things. 2. Less involvement: Companies have the ability to subdivide their capital into small amounts, allowing them to draw in huge numbers of investors who also benefit from the sub-division by being able to sell on small parts of their investmen