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When the company is big enough so that the managing becomes difficult and complicated with many divisions and activities and many persons have to br depended upon for management.In anticipation of risks and liabilities involved, limited liability companies may be incorporated.
.In case of partnership, when number of partners exceed the legally pernitted maximum.
Answer of this question is dependant on relevant regualtions, opportunism and tax ordinance etc etc applicable on different countries.
When it requires an increase in capital
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