123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

8 Reasons Why You Should Opt For A Private Limited Company

Profile Picture
By Author: Keval Shah
Total Articles: 1
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

You may wonder that why should one opt for Private Limited Company when there are other options like sole proprietorship and One Person Company. In order to answer this particular question a few advantages of Private Limited Company are mentioned below which might convince you to start your own Private Limited Company.
1. Separate legal entity
A Private Limited Company is a legal entity separate from that of its members and is a juristic person established under the Companies Act. Private Limited Company form of organization has wide legal capacity and can own property and also incur debts. The death, insanity, incapacity or insolvency of its shareholders or directors does not affect the existence of the Company in any way.

2. Limited liability
Private Limited Company is an independently taxed and accountable business entity. The liability of the shareholders is limited to the company shares and assets. In case if the company incurs any loss, the shareholders will not suffer beyond their unpaid share capital. It protects your personal assets.

3. High market value
Private Limited Company is registered under Ministry of Corporate Affairs (MCA), hence it has high professional value. When a business is registered with MCA, there is proof of its existence. Now a days, credibility and trust matters a lot for stakeholders while dealing with businesses.

4. Tax benefits
Paying tax is one of the major concerns while running a business. In case of Private limited Company only the profit gained by the company is subjected to tax.

5. Resources and Funding
Initial funding and investment is prime factor for company set-up. Private limited companies tend to raise fund easily. Funds are essential for growing and maintaining the business. Banks easily provide loans to the private limited companies. Venture capitalists and angel investors prefer to fund private limited companies.

6. Creation of Brand value
Whenever an establishment is registered as a private limited company, the unique name of the company also gets registered. The registered unique name is then protected by the intellectual property rights. Hence the company will have its own unique identity and will be separated from other businesses.

7. ESOP (Employee stock option programme)
Private Limited Company has an option of ESOP, where company issues shares to its employees in order to motivate or reward them. LLP or Sole Proprietorship doesn’t have the option of ESOP.

8. Dual Relationship
When a Private Limited Company is formed it is possible to make a valid contract with any of its members. A person at the same time can be a shareholder, director and also an employee of the company.


Afleo offers complete end to end Private Limited Company Registration.

Total Views: 61Word Count: 614See All articles From Author

Add Comment

Business Articles

1. Explore Good Reasons For Hiring Professionals For Company Registration
Author: A1 Corp

2. Experience The Top Notch Benefits Of Company Registration In Singapore
Author: A1 Corp

3. Opportunities For The Global Smart Card Ic Market To Reach $4.3 Billion By 2023
Author: Lucintel LLC

4. Document You Require Before Company Registration In Singapore
Author: A1 Corp

5. 10 Benefits Derived By Accounting Firms From Remote Staffing
Author: aniketcapactix

6. Nichrome Brings One Of The Leading Tablets Tooling Manufacturer – Yener To India
Author: Nichrome India

7. Choose A Specialist To Register Your Company Without The Risk
Author: A1 Corp

8. 5 Tips On Choosing The Perfect School For Your Child
Author: Priya Varma

9. Step By Step Directions To Seek Out The Simplest Digital Promoting Agency:
Author: ramakrishna

10. Maleic Anhydride Market Rise, Key Success Factors, And Business Opportunities Including Key Players
Author: prismane consulting

11. Pick Out Cylindrical Bearings Based On Your Requirement
Author: rollerbearings

12. Top Microwave Oven You Need To Really Think About
Author: admin

13. Know Everything About Full Complement Cylindrical Roller Bearing
Author: rollerbearings

14. How To Curb Longest Delay In Queue
Author: Surabhi Joshi

15. Company Formation In The Uk – Process Made Simple
Author: Irene Emily

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: