Kamis, 05 November 2015
Understanding individual Company
Individual company does not recognize the separation between the company's assets and personal wealth. All the wealth owner of a guarantee all the debts the company's debt or in other words the employer has unlimited liability. And all profits belong to the employer. Establishment of an individual company in Indonesia does not have specific rules, but for some field activities of effort required permission from the local government.
In general, individual businesses have limited capital so that these efforts are generally classified into small scale businesses. If the business reaches a certain size, other forms of business more attractive to choose from. Examples of individual companies is a toy store, shop, garage. The advantages of a business entity is an individual company:
Excess Enterprises Individual company
Easy to set up and dismantle
The owner holds full control of the plan, capital, policy and business management decisions and only subject to the applicable laws and regulations.
Management is flexible
The owner receives all profits derived by an enterprise
Low cost of organizing and dissolution
The owner can sell the business to anyone who desired
Individual companies do not pay income tax as separate businesses.
People who want to form a business entity that is the most inexpensive, simple, self-administered, confidential and flexible will choose the form of individual business entities. However, there are some disadvantages of individual business entities is as follows:
Disadvantages Enterprises Individual company
The limited amount of capital that can be invested. The main weakness of an individual company is lack of capital that can be invested by someone. The lender usually reluctant to lend funds to the owner unless the owner's personal honesty and ability is not in doubt.
The owner's responsibility is not limited to the risks.
In certain cases, the gains or profits high will result in the owner subject to the income tax rate that is higher than the corporate form.
Concentration of control only on the individual owner can reduce the motivation of the employees who want to participate take part financially in the business workplace.
Death or disability would lead to the end of the business owner.
Understanding an individual company
How? Already know what the definition of individual companies and the advantages and disadvantages of one of the forms of these enterprises. Read also the article on the definition of the enterprise and many kinds of business entities and their shape