By DHARANI KUMAR - December 5, 2016. 8. Private Limited Company is a specialized legal entity having limited liability and permanent existence which is now incorporated under the Companies Act, 2013. #1 – Perpetual Succession Perpetual Succession means the company never dies. Advantages of a private limited company Sure, limited liability is an obvious reason to set up a private limited company. So let us see what are some major advantages and disadvantages of incorporating a private limited company. Advantages of a Private Limited Company. • By proving the concept of business plan and innovative futuristic idea one can get fund from angel … Smaller resources: A private company cannot have more than fifty members. The registration of Private limited company is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. Private Limited Company is the most famous type of business entity in India. Limited liability: In a private limited company, there is a limited liability, which means the members of the company are not at the risk of losing their private assets. Private limited companies offer the best type of exit strategy for all promoters. A limited company director will usually take the maximum amount that is not being taxed in … Limited Liability implies that the owners or shareholders of the company are not personally liable to pay debts of the business. Advantages of a Private Limited Company • Separate Legal Entity: An entity means something which has a real existence; a thing with distinct existence. Just about 32 percent of the registered companies in India are enlisted as Private Limited Companies. Besides, limited liability and minimal statutory compliances, pvt ltd companies offer the following advantages: Separate Legal Entity. A juristic person is a person who is not a natural person or a … The … In addition, a shareholder of a private limited company typically must seek the … The transfer is … Private Limited Company is an exceptionally old school idea for a privately held independent venture element. Consider the aspects that can impact your business and also the problems you wish to avoid before locking down on any of the options. Benefits and Advantages of Private Limited Company. A Private Limited Company (PLC) is a body corporate and is a legal person in the eyes of law formed by two or more persons / legal persons. Earlier the rate of income tax used to be 30% plust applicable cess but the Government of India has reduced the rates of Income Tax applicable on Companies in accordance … For contractors, umbrella companies offer fare more flexibility in terms of setting work conditions and … There are some great benefits of setting up a limited company and here they are: Tax efficient . In the Private Limited Company there would Limited Liability for members. However, there are a number of other limited company advantages available. Though there are various advantages of Private Limited Company, it is not out of disadvantages to all extent. Benefits of Private Limited Company. There is a Limited risk to personal assets in Private Limited Company. Almost 93 percent of the companies incorporated in India are registered as Private Limited Companies. Private Limited Company Advantages. Unlike public limited companies, private limited companies are legally restricted from issuing their shares through an initial public offering.As such, they cannot trade their shares on a stock exchange.With this restriction, private limited companies may find it difficult to attract outside investors to buy the shares. It’s well known that a limited company is more likely to be tax efficient compared to a sole trader, and that is one of the many reasons it’s a popular business model.