1. A source of Long term capital:In general, the company usually have various source of fund from the financial institutions. But almost of them is the short-term fund which needed to pay back interest that might be the barrier for business to achieve the long-term goals. In contrast, the company is able to raise fund from capital market without any burden of principal or interest payment which enable the company to have more business liquidity and able to achieve the business goals.
2. Enhance corporate profile:Having securities listing in the capital market will improve the company financially status and have the better management standard because of improving accounting and transparency standard, transforming itself from a family-to a professionally-run enterprise that enhances the business visibility, improve the financial strength, and organizational stability.
3. Business network:Besides having the long-term fund with no burden on interest payment, being as listed company in the capital market also increase the public awareness of the business, attracts both domestic and foreign investment specially attracts the strategic partners and opens up opportunities for business expansion and modernization.
4. Tax Incentive:According to Article 16 Increased or Decreased Profit Tax Rates of the Law on Income Tax No. 67 / NA, dated 18th June 2019 and Law on Amendments to Certain Articles of the Law on Taxation No. 01/NA, dated 7th August 2021, the listed companies on Lao Securities Exchange will be entitled to a 7% reduction on corporate income tax from the normal rate or from 20% to 13% over a period of four consecutive years from the year of listing. In addition, the sale and purchase of shares and dividends of shares listed on Lao Securities Exchange are also exempt from income tax.
1. A source of fund:Raising fund by issuing debt instrument as Bond is another channel for the company to get a lot of funds for utilizing in business operations and extension. The bond interest rate and redemption period will be determined by issuer, so the company will have better financial management plan.
2. Management control:The company issues bond to public will not lose any power to control and manage the business because the bondholders are creditors who are not entitled to attend and vote in the shareholders' meetings. As a result, the company owner is entitled to fully manage business.
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