The advantages of Private limited company registration are many. If you are looking to start your Pvt Ltd company in India” Make sure you read the following advantages of a private limited company that take your business to the next level. So, let’s consider:-
- Limited Liability Protection
First and foremost benefit of private limited company registration in India is limited risk to personal assets/limited liability protection. The shareholder’s personal assets have limited liability.
In other words, a shareholder of a private limited company needs to pay for the liability only to the extent of the contribution created by you. The shareholders do not have any personal liability. This is why they are liable not to pay for the company’s liability out of their own personal assets.
- Raising Capital
Even though Pvt Ltd company registration online requires compliance, it is chosen by entrepreneurs to have funding and better opportunities for business growth through equity while limiting their liability unlike partnerships and sole proprietorships.
- Legal Entity
Another important advantage of PLC is its separate legal entity. It is considered a separate legal entity which assures the Company is liable for the management and operation of its assets and liabilities, creditors and debtors.
In addition to this, You will not be held liable for the losses of the registered company. So, the creditors will not be able to proceed against you to recover the money.
- Trust & Credibility
Private Limited company registration boosts trustworthiness and credibility among customers and business partners. It is more trustworthy and professional unlike sole proprietorships or partnerships, which may lead to better access to funding and business opportunities.
- Continue Existence
A company has ‘continuation’ or perpetual succession, the right to continue its operation even after modifications in its management structure or ownership.
Being a separate legal person, a company cannot be affected by the cessation or death of any member and still continues to be in existence no matter the changes in membership/ownership.
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