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Since Pvt. Ltd. Company is listed with MCA, it enjoys a legal status which has its own existence separate from the people who runs it.
Since the future is always uncertain and in case a business fails then in private limited its shareholders liability is to the extent of its investment in company but in case of partnership/ Sole Proprietorship even personal assets will be at risk.
To promote company culture govt. has provided benefits of reduced rates of 22% and 25% for companies. Though for other form of business it will always be 30%.
Since there is transparency due to govt. regulations, private limited company is mostly preferred by the corporate clients, investors, lenders and vendors, as compare to Proprietorship or partnership firm.
Due to its legal existence a private limited company enjoys more access to fund from banks, angel investors and VC firms, which is difficult in other forms of business.
Due to ease of raising funds along with trust with the business partners it becomes easy for Pvt. Ltd. Company to expand their business and leave a strong footprint.