A private limited company is a preferable choice for the business owner who thinks to start a company or any existing businessman to expand its company circumference. Furthermore, their registrations is very simple and have minimal statutory compliance. This road will offer you many benefits which are discussed as below-
Following are the benefits of privately limited company registration-
- Separate Legal Entity
Just like a public limited company, the Pvt Ltd Company also has a separate legal entity which means it can sue or can be sued in the court. It is a juristic person that is established under the act and has the capacity to own property in its own name.
- Perpetual Succession
A company has a perpetual succession; it is continued until it is legally dissolved. The death, disability or retirement of any director, employee, and person will not affect the continuity of the company.
- Limited Liability Company
In case of debt, the members or shareholders of a company to pay creditors from their own resources. liabilities are limited only to the extent of the face value of shares taken up by them.
- Feasible Transferability of shares
Shares of the private limited company are easily transferable by one shareholder to any other person. You just need to file and sign a share transfer form and handed over to the buyer of the shares along with the share certificate.
- Can buy property on Own name
A registered company can acquire, own, enjoy and alienate property in its own name. In the layman Language, the shareholders are not the real owner of the company property the company itself own the right to enjoy the property. Furthermore, the company also enjoys better avenues for the of funds.
