Why do many bosses like to set up investment companies, but they don't buy shares in their own names?

Setting up an investment company and then investing abroad together with the investment company, instead of directly investing in shares by individuals, has the following four main advantages.

For the need of equity structure design

If an investment company is established and then other companies are established by the investment company, other companies can be responsible for their own profits and losses, which is convenient for investing in different businesses and facilitating the diversified development of enterprises. This ownership structure is more reasonable and scientific than the personal management of many companies. After all, personal ability is limited, and investment depends more on the ability of the team. It is conducive to the rapid development of enterprises, the realization of strategic objectives of enterprises, the establishment of investment companies, mergers and acquisitions in the name of investment companies, and the expansion of markets, which is conducive to the rapid development and growth of enterprises. Moreover, investment companies can integrate resources and allocate business plans for different companies, making it easier to achieve the overall goal.

3. Thoughts on tax planning

Income from dividends distributed among resident enterprises can enjoy the preferential policy of exemption from enterprise income tax, but if individuals invest in shares, they need to pay 20% dividend tax. In addition, there are not so many restrictions on borrowing between enterprises. If shareholders borrow in their own names, they need to be treated as dividends and pay a tax at the end of the year.

4. Reduce investment risks

For example, Zhang invested 654.38 million yuan to set up an investment company (limited company), and Zhang was the major shareholder; Then set up a limited partnership with100000 yuan. The investment company is GP (general partner) of the limited partnership, only 1% of the shares can be used to control the limited partnership, and the rest can be used to motivate employees and introduce talents. Then set up a main company with a registered capital of 1 100 million yuan, with limited partnership as the major shareholder of the main company. Even if the main company goes bankrupt, the investment company only needs to bear the limited liability of 1 10,000 yuan. This structure is the shareholding structure adopted by many large companies at present, which minimizes the risk through different responsibilities of different types of companies.