Best 5 Advantage of Private limited company registration

You have ended up on this page, the reason is you are confused about the choice of basic business registration for your new business. Why are you confused so much? just make preliminary self-analysis of cost-benefit analysis and suitability for your nature of the business and consider our 5 points.

Is private limited company is best for new business registration?

The answer is maybe, it depends on your nature of a business, number of business owners and complexity of business, legal framework etc. Cost of new private limited company registration has become cheaper day by day and also the process of registration had much faster and simple, credits to Ministry of Corporate Affairs.

5 Advantages of private limited company registration

  • Limited Liability – In an easy to understand terms, we can say as your risk is limited to the amount you invested in shares of the company and pending amount to be paid for shares already taken up.
  • Enhanced Credibility – Why so? because compliance level of Income-tax and other acts will be good for  Pvt Ltd company.
  • Easy to get investors – The Private limited company is having good features so investors always prefer for the private limited company so they can invest in shares or debentures.
  • Unlimited Life – In technical terms, we call it as perpetual succession, it means the company will continue to exist irrespective of members (shareholders) going out of comes in.
  • Borrowing capacity – Private limited company enjoy good borrowing capacity because of robust compliance and monitoring by Ministry of Corporate Affairs.

So in layman understanding, if you need any of these features go for private limited company registration. You may have understood some basic points to register a private limited company, else if you had come here after considering proprietorship firm registration just read this guide for proprietorship firm registration  

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