Advantages of Private Limited Company Registration
- Private Ltd. has the Limited Liability:
It means that if the company experience financial distress because of normal business activity, the personal assets of shareholders will not be at risk of being seized by creditors.
- Attract Funding:
Funding is essential for starting, maintaining, and growing a business. Today small businesses are being out-competed by larger businesses. Hence, it is essential for all businesses to grow quickly, and have the ability to attract funding from any source. Thus, a private limited company is the ideal type of business entity for growing businesses.
- Improve Business Credibility:
Today customers, vendors and investors look for credibility in the businesses they deal with. In starting a private limited company, the information relating to the company, such as name of the company, date of incorporation, registered office address, status of the company, and other information are made available in a publicly searchable database. This feature makes it easy to authenticate the existence of the business, improving business credibility.
- Continuity of existence:
Business not affected by the status of the owner. The best part of continuity of existence is that a company will continue to exist, no matter how many directors, officers and shareholders join or leave.
- Minimum number of shareholders:
Required to start the business are only 2. Can be raised as the maximum number of shareholders allowed is 200.
- Scope of expansion:
In Private Limited Company the scope of expansion is higher because easy to raise capital from financial institutions and the advantage of limited liability.
- Brand Value:
Company’s brand value will get increased because people come to know about the company very well. Private Limited Companies offer reliability or trustworthiness to businesses in financial institutions, suppliers and potential clients. As it makes easier for companies to receive loans at suitable terms from convincing potential clients or banks while making and finalizing deals, these companies are trusted more than other forms of business.
Since the share price reflects the company’s financial healthiness it would become easy to arrive at a price in case of mergers and acquisitions.
- An Exit Plan
Private limited companies offer the best type of exit strategy for all promoters. Only shares of a company can be sold or transferred in part or whole to another entity easily without any hassles, while the business remains a going concern. Therefore, starting a private limited company provides a tremendous edge in planning and executing a business exit plan.
To Register Private Limited in Mumbai:
Call on: 82608-82609
Email us: email@example.com
If you’re based anywhere near or in Mumbai, Visit Our Office. You’ll surely be satisfied with the timely & affordable services we offer with the absolute peace of mind.