advantages of private limited company

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The Advantages of Private Limited Com-pany

Agenda Covers

• What is Private Limited Company?• Why most of Entrepreneur choose Pvt. Ltd.

Company?• What are the Advantages of Private Limited

Company?• Advantages are Extend Over as Followings:

– Separate Legal Entity or Ideal for Start-Ups Growing– Limited Liability– Tax Advantages– Easy to Get Funding– Continuity of Existence– Easy Transferable Ownership– Greater Credibility as Compare to Others– Easy Debt Access

What is Private Limited Company?By Definition: Private Limited Company is a business entity incorporated

under Companies Act 2013, which has minimum two members and maximum 200 members and it offers limited liability or legal protection for its shareholders.

• A private limited company has its own legal personality, being separate from its owners.

• Private limited company is the most popular legal structure entity amongst small, medium and large businesses in India and also allows outside funding for business.

Why Entrepreneur Opting for Pvt. Ltd Company?

A Question Beating to Your Mind• It comes to your mind why should I opt for private limited company when

there is LLP or One Person Company?• For this questions answer we mentioned below few advantages of private

limited company which may move you to start your private limited company:Advantages of Private Limited (Pvt. Ltd.) Company• Separate Legal Entity• Limited Liability• Tax Advantages• Easy to Get Funding• Continuity of Existence• Easy Transferable Ownership• Greater Credibility as Compare to Others• Easy Debt Access

Separate Legal Entity

A business or a private limited company can be set up a separate legal entity from the individual or owner. A company can form of organization has wide legal capacity, own property and also incur debts.

Limited Liability

• Limited liability means legally responsible only to a limited amount for debts of a company. Shareholders of a limited company are not personally responsible for any debt of the company.

• This is a great benefit for shareholders there is limited liability for private limited.

Tax Advantages

Private limited companies enjoy tax advantages in addition to limited liability. These companies pay corporation tax on their taxable profits and tend to be exempt from higher personal income tax rates.

Easy to Get Funding

How can a startup or entrepreneur get funding? • By proving the concept of business plan and innovative futuristic idea one can

get fund from angel investors, venture capitalist, from top firms, from successful entrepreneur.

• Rather investor preference is high in private limited company.

Continuity of Existence

• Business is not affected by the status of the owner means Pvt Ltd companies are not comes to an effect of owner.

• If it comes to their existence or inability to continue the proceeding of company.

Easy Transferable

• Private limited company can be transferred their shares to shareholders and other person at any time without any complications.

• Change in Directors and Shareholders can be done in a short time period.

Greater Credibility

Private limited company has popular legal structure for businesses and high credibility other than one Person Company or limited liability partnership.

Easy Debt Access

• A private limited company has more options for taking on debt than Limited Liability Partnerships and One Person Companies.

• It can get loan easily from banks, issue debentures and accept deposits from public members.

Go For Private Limited Company

If you have a small amount of capital you can form a private limited.

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