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Monday, October 23, 2017
You are here : Advantages of Private Limited Company

Advantages of Private Limited Company

Introduction

One can form a Private Limited Company with just two members extending up to 200 members. As per directors number is required, they can range from 2 to 15. This type of corporation has many features common to a partnership firm. For Private Ltd company registration in Delhi, a total 200 shareholders are acceptable. But to start with Private Limited Company should be properly registered without any flaws in paperwork. You may be in doubt why to get a Private Limited Company when there is One Person Company and also LLP.

There are several advantages of Private Limited Company that are discussed below:

Benefits of Private Limited Company

Separate identity: A private limited company has a separate entity to itself. The law recognizes this as a separate company. Thanks to this feature, Private Limited Company can own property under its name. Also, the company can sue others or can be used all because of its recognition as a separate entity.

Stability due to Limited Liability: With Private Limited Company, shareholders get the benefit of limited financial liability. The liabilities are only in the terms of shares. Due to this, the shareholders’ income and personal assets are safeguarded during any unfortunate financial crisis experienced by the company. Thus, the company can also take risks to grow BIG.

Long and continuity of Existence: When it comes to the status of their existence, the Private Limited company is not affected. Thus, if the owner is not able to continue due to any unforeseen reason; it will not hamper the working of the company.

Minimum requirement of members and shareholders: With a minimum of two members and two shareholders, you can start your private limited company. Due to this reason, many budding entrepreneurs can dream of starting their own company.

Ease in Acquiring Funds: In a Private Limited Company, up to two hundred shareholders are allowed and also two members can be added. With this large numbers, and along with the reputation of the company, it is easier for a Private Limited Company to raise funding as compared with other companies. Taking loans from banks and other financial institutions is also simpler.

Flexible Relations: A person can act as a director, shareholder and an employee all at the same time when the Private Limited Company is being formed.

Conclusion

To conclude, we can say that a private limited company is not only the most common form of enterprise but also has many benefits that comprise of more profits and larger scope. Although, nothing is perfect in this world, so this has its own share of disadvantages. But, will not be wrong in saying that the advantages overrule the advantages.

After reading the advantages of the private limited company, if you are hoping to get a Pvt Ltd company registration in Noida; then contact consult4india, a leading company for incorporation/registration/formation of a company. We help in making the registration and all legal related procedures simpler for you.

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