Advantages and disadvantages of buying stocks in the name of the company

As a shareholder, a company can invest in other companies without the problem of double taxation. As for the advantages and disadvantages of doing so, it is difficult to simply explain. If it is a company controlled by individuals, it generally depends on the development needs to decide whether it is necessary to do so.

Company investment, this kind of problem suggests that you hire a lawyer nearby to provide professional legal services. At present, the comprehensive lawyer team service is also relatively cheap.

The so-called employee stock ownership means that enterprises provide various preferential conditions so that employees can obtain shares in their enterprises and become shareholders of enterprises. Because equity represents the burden of profit and loss, employees are willing to bear the risk of success or failure in business operation, but employee shares are only applicable to joint stock limited companies. Equity refers to the original acquisition of shareholders' rights after the establishment of the company. As long as it is necessary for the company to increase the number of shareholders and the investor has the intention to invest in shares, once the two sides reach an agreement, they will become shareholders. Although the shareholding is carried out by contract, it is not legally necessary to establish a contractual relationship. Generally, it shall be handled in accordance with relevant laws and articles of association. New shareholders should also be responsible for the company's debts before they become shareholders.

1. shareholding procedures: the procedures for holding shares by natural persons are relatively simple, while those for holding shares in the name of the company are relatively complicated;

2. Operation mode: natural person holding shares is a direct operation; Holding shares in a company is an indirect operation;

3. Taxation: Holding shares by natural persons can prevent companies from paying taxes repeatedly.

4. Income dividend: Share in the name of an individual, and the company's income dividend will belong to the individual in the future. If you buy shares in the company, the dividends will go to the company;

5_ Form: individual shares are in the form of natural persons, and company shares are in the form of legal persons; 6_ Registration: you need to go through the formalities of equity change in the industrial and commercial department, and you need to go through the formalities of equity change in the industrial and commercial department; 7. Responsibility: The responsibility shall be borne by the natural person who shares in the company.

Profit is to avoid risks. If the management behind the invested company is not good, it will ultimately be borne by the equity holding company. The downside is that everything can only be done in the name of the company.