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Benefits of a Private Limited Company Registration

Benefits of a Private Limited Company Registration

Benefits of a Private Limited Company Registration

A private limited company is the most prevalent form of company registration for those seeking to generate revenue and run the business professionally. It’s a form of company registration that creates the utmost professional impact on the customers.

In this blog, we will discuss the top benefits of private limited company registration in India. 

Distinct Legal Entity
An entity is defined as being something that possesses a separate existence; a thing that possesses a separate existence. Under the Companies Act, a company is deemed as a separate legal entity and a juristic person. A juristic person is a non-natural or human person. As a result, a company has broad legal authority, the ability to acquire assets, property and incur liabilities and debts. A company's members (Shareholders/Directors) are not liable to the company's creditors for such obligations. Thus, a private limited liability company is a separate legal entity distinct from its members.

Easy Registration
There are many people who might tell you that registering a private limited company is a lengthy and tiresome process. But, in reality, it isn’t if you get a professional private limited company registration service. Moreover, in today’s digital world, online company registration is an extremely easy process and requires minimum physical work. A professional Chartered Accountant can easily guide and help you with the process.

Unhindered/Perpetual Existence
Perpetual succession means that a company can continue to exist indefinitely given that it is not lawfully dissolved. A  private limited company, as a distinct legal entity, is unaffected by the demise or departure of any member and continues to exist regardless of membership changes. Perpetual succession is a critical quality of a business.

Limited Liability
Limited Liability refers to the legal position of a business being legally liable for just a limited amount of its debts.
In contrast to partnerships and proprietorships, a limited liability company limits the members' liability for the firm's obligations and debts. To put it simply, the liability of a company's members is limited to only the value of shares they possess. Thus, if a company is limited by shares, the members' liability in the event of a winding-up is limited to the value of their outstanding shares.

Transfer of shares is both free and simple
A shareholder may easily transfer his or her shares in a company limited to another individual. The transfer is straightforward and easy in comparison to the transfer of an interest in a partnership or a proprietary concern. Transferring shares is made simple by completing and signing a share transfer form and delivering the buyer of the shares the share certificate.

Relationship between Two Parties
A private limited company can enter into a legitimate and effective contract with its members, in the case of a company form of organization.  It is also conceivable for an individual to be both the owner and employee of a business. Thus, an individual can be a shareholder, debtor, director, and worker of the company all at the same time.
Capacity for Borrowing
A private limited registration has the leverage for improved borrowing opportunities. It may issue unsecured and secured debentures and may also take public deposits, among other things. Even banks and financial organisations would rather lend huge sums of money to a private limited company rather than a partnership business or proprietary concerns.


Are you looking for a professional CA firm for the private limited company registration in Noida ? Careful Counting provides the best service with highly competent CAs and Company Secretaries.

For more information, you can visit the website given below.


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