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Why Should You Register a Private Limited Company?
Limited Liability of Shareholders
By registering as a PLC in India, owners can limit their liabilities to their capital contribution commitment. Their personal assets are protected from any major loss or debt in the business, unlike Partnership and Proprietorship firms.
Separate Legal Existence
The company enjoys a separate legal existence from the owners. It can enter into contracts, own assets, and sue the third parties in its own name. As a distinct entity, it has a perpetual existence even beyond the lifetime of the members.
Clarity in Management and Ownership
While the shareholders are the owners of the business, the management decisions are made by the directors of the company. This helps the business to benefit from professional management without diluting ownership for the promoters and shareholders.
Ease in Raising Funds
Being a highly compliant structure, banks prefer to issue loans to Companies and LLPs. Pvt Ltd Company offers key advantages like the ease in ownership transfer and limited liability protection for owners. Investors like Venture Capitalists, Private Equity Firms, and HNIs choose to invest in private limited companies.
