What are the Advantages of Joint Stock Company? What are its features?
What are the Advantages of Joint Stock Company? What are its features?
Each type of company has its own advantages and disadvantages. Joint stock company advantages are as follows under the headings.
Advantages Compared to Other Company Types
There is no cap on shares in other types of companies. Shareholder partners can be taken as desired.
The fact that there is no limit on shareholder partnership also paves the way for the company to go public. Unlike other limited liability companies, joint stock company shares can be offered to the public.
In case of a share transfer that may take place in the company, it is not obligatory to carry out the transfer in the presence of a notary public.
Unlike limited companies, company partners who are not on the board of directors do not have insurance requirements.
In joint stock companies, the partners of the company borrow as much as the capital they have committed.
While transferring shares in the Trade Registry Gazette, registration is not required.
It is one of the most preferred company types in the global environment. This is because there is less systematic risk compared to other companies.
Being one of the most preferred company types means more vision that can be taken as an example for the future of companies. This is one of the reasons why joint stock companies are more advantageous than other companies.
Cost Advantages
Joint stock companies have special privileges in issuing bearer shares, unlike other companies. These privileges are tax advantages.
It is exempt from the costs incurred during the capital share transfer. Capital share transfer is easy.
The personal assets of the partners are not endangered in case of any debt. In this regard, joint stock companies provide assurance to the partners.
The competitive environment in which the fastest wins in commercial life will return as a profit thanks to the advantages of the companies during the share transfer. This counts as a cost advantage.
Company Responsibilities
In joint stock companies, there is no material responsibility for the assets of the partners of the company. This means that partners can trade more comfortably and boldly.
Shareholders are not required to take systematic risks. Debts are limited only to the promised amount.
Capital owners do not hesitate to transfer their shares as the process is faster and easier compared to other companies.
What are the Advantages of the Joint Stock Company in the Bank?
Some advantages of the joint stock company in the bank are given below.
Joint stock companies have a blocking fee that must be deposited in the bank at the time of establishment. The blocking fee deposited according to the procedures is taken back from the bank after it expires. Banas also deduct a fee for the deposited block. It may be possible not to deduct the blockage cost after a prior agreement with the banks. This procedure, which may vary from bank to bank, should be investigated in advance.
In companies with 10 or more personnel, promotions can accumulate on behalf of the company on the bank where the salaries are deposited.
Large What are the Features of the Joint Stock Company?to Action Headline
The characteristics of joint stock companies are as follows:
Joint stock companies have a legal person. Since there is a legal entity, it is necessary to open a registration in the trade registry.
An advertisement is published in the trade registry gazette after the opening.
Joint stock companies are considered capital companies.
Titles are given according to the work done by the partners.
To open a joint stock company, a capital of at least 50,000 $ is required.
Capital divisions realized in companies are 1 cent and its multiples.
Notary approval and trade registry gazette announcement are not required for the company's share transfer.
There are no managers in the company, there are members of the board of directors.
What is a Joint Stock Company?
A joint stock company is a type of company in which the capital is separated by shares and the shareholders do not take any material responsibility, and the founders can optionally remain anonymous. It is one of the most preferred company types in the world. There are no official restrictions on the transfer of shares. Transactions are handled quickly and easily. However, it is established with a certain amount of capital at the time of establishment. One or more people can install it. There is no founder upper limit, so there are no restrictions on public offering.
What are the Disadvantages of a Joint Stock Company?
Each type of company has advantages and disadvantages, as well as joint stock company advantages and disadvantages. Some of the disadvantages are:
In joint stock companies, at least 50,000 $ capital is required during the establishment phase.
During the establishment of the company, 12.500 $ is blocked in the bank. Other types of companies do not have such obligations.
Although it varies from bank to bank, a fee may be charged for the blocking service.
When the general assembly meeting will be held, a ministry representative is present to attend the company meetings.
Companies with a capital of 250,000 $ or more must have a lawyer.
Some bank privileges that exist in other companies are not available in joint stock companies.
Monthly Expenses of the Joint Stock Company
The monthly fixed expenses of limited companies are as follows:
VAT declaration paid every month 64.10 $
The quarterly corporate tax payment is calculated by multiplying the company's quarterly earnings by 15%.
Joint stock companies are obliged to pay Income Withholding Tax up to 15% of the share after the dividend distribution.
Fixed stamp duty is deducted from the declarations submitted. As of January 1, 2022, for each taxable paper, the fixed stamp duty will not exceed 814,234,00 $ or more.
Income tax return 11 $ (Normally, it is paid once a year as 133 $. Its reflection on monthly expenses has been calculated.)
Concise Statements are 25.33 $. (Normally, 76 $ is paid once in 3 months. Its reflection on monthly expenses has been calculated.)
Rental price of the company
Note: these charges are for the first half of 2023.
The monthly total expenses due to the public offering of joint stock companies and the uncertainty of their monthly earnings cannot be calculated net. Apart from the current taxes listed above, it is also possible for the company to make a loss and increase its expenses.
Why is a Joint Stock Company Preferred?
Some joint stock company benefits are listed below. These benefits provide clarity on why joint stock companies are preferred.
There are no risks in other companies.
The personal assets of the partners of the company are not endangered.
Shareholders of the company have financial responsibilities as much as their capital commitments. Other than that, they only make a profit.
The share transfer process of the company is not exhausting. The procedure is comfortable.
It can be offered to the public. Bonds and stocks can be issued.
High profits can be obtained compared to other companies.
Since it is one of the most preferred company types globally, the competitive environment is lively.
What are Joint Stock Company Taxes?
The taxes of joint stock companies are as follows:
Corporation tax
Corporate Provisional Tax
Income Withholding Tax
Fixed Stamp Duty
