What does it mean for a car to be registered under a company?

[DelNathan]

Registering a new car under a company's name, or when a company requires that a new car must be registered under the company. The following introduces the pros and cons of buying a car under a company's name: Pros: The depreciation of the car can be listed as a company expense to reduce the company's taxable profit, thereby decreasing the tax payable. The annual expenses of the car (including insurance, repair costs, fuel expenses, etc.) can be listed as company expenses to reduce the company's taxable profit, thereby decreasing the tax payable. Cons: If the company encounters financial disputes, the car may be affected if it involves debt settlement. In case of car accidents, such as major accidents involving compensation exceeding the insurance coverage, the company's funds may be impacted.