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ADVANTAGES OF PRIVATE LIMITED COMPANY

 ADVANTAGES OF PRIVATE LIMITED COMPANY

A Private limited company is the most preferred type of business entity among budgetary organizations. A private limited company is usually held for small businesses.

Pvt Ltd Company Registration Benefits

Read through a few advantages that you could benefit from when you register your firm as a Private Limited Company 

  • The establishment of a Private limited company requires only two directors
  • It is a separate legal entity that is separate from its members.
  • Funds for private limited companies can be obtained easily through bank loans, angel investors, and venture capitalists.
  • Directors of the private limited company can participate in board meetings in matters concerning their interests.
  • A private limited company has an uninterrupted existence. This means that the functioning of the company will remain unaffected by the death or departure of any member.
  • A private limited company holds the advantage of being legally responsible for only a limited amount of shares of the company.
  • The transfer of shares in a private limited company is easy when compared to the transfer of interests in a proprietorship or partnership firm.
  • Since the private limited company has a legal entity of its own, it can acquire, own and enjoy a property in its own name
  • Since a private limited company is a separate legal entity, it has all the right to sue and to be sued in its own name.
  • Restrictions on buyback of its own shares and other restrictions on financial assistance for the purchase or subscription of shares do not apply to private limited companies.
  • In the case of a private limited company, a person can be a shareholder, creditor, director, and employee of the company all at once.
  • The brand value of a company is increased as a private limited company gives a feeling of trust and confidence to the employees, stakeholders, and customers.

CONCLUSION

You’re entitled to the above-mentioned benefits when you choose to register your firm under the private limited company registration. When you’re aware of the advantages that come with registering your private limited firm, you’ll have an idea of how you can grow your business keeping in mind the various advantages.

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