Skip to main content

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.

Comments

Post a Comment

Popular posts from this blog

Is the LLP Registration Process the Best Option for Company Registration?

Image
Is the LLP Registration Process the Best Option for Company Registration? When forming an LLP, there are a few requirements that must be met. Will you be able to lawfully form and manage an LLP if and only if you can meet the following requirements? A limited liability partnership (LLP) must be formed by at least two people. There is, however, no upper limit on the number of partners. In the case of an LLP, capital is decided by the business’s needs and the members’ contributions to the partnership. The Stamp Duty on the deed is determined by the amount of capital. To start a business as an LLP, there is no minimum capital need. A resident of India must be at least one of the LLP designated partners. When an LLP’s turnover is equal to or greater than 40 lakh and its total capital contribution is equal to or greater than 25 lakh, its accounts must be audited. Reason for LLP Registration   Use a company’s operational ease and flexibility to your advantage.   Reduce the amount of paperwor
Read more

How to register for professional tax in Bangalore

Image
 How to register for professional tax in Bangalore We all must have come across the term ‘Professional tax registration’ somewhere or the other. But did you ever try to find out what exactly is this PT registration is all about? The next time you get your payslip, take a couple of minutes off to study the break-up of the deductions. You may come across the term ‘Professional Tax’. Do not panic or get confused with this term with Income tax. Both are altogether different terminologies like how a north pole and a south pole differ from one another. However, your salary slip may not mention professional tax because not all Indian states impose it. The states that impose the professional tax are Andhra Pradesh, Assam, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Orissa, Sikkim, Tamil Nadu, Telengana, Tripura, and West Bengal. Now in this blog let us know what is a ‘Professional Tax is all about? Professional tax is a tax imposed by the state government. Professional tax is
Read more

Documents of Registered Office for Indian Company Registration

Documents of Registered Office for Indian Company Registration  Registered office proof of the company stating if the property is rented/ leased,   Copy of the rental/lease agreement   Copy of electricity/water bill (business place)   In the case of your own property, a copy of the sale deed and electricity bill is sufficient   Copy of no objection certificate from the owner of the property
Read more