Advantages and disadvantages of Private Limited Company In stock exchange shares cannot be quoted. As a single trader, you cannot expense your wage as you can with a limited company. A company can be owned by just one individual who has sole control over all decisions made about the business. For e.g. Advantages and Disadvantages of Public Limited Companies It is no new business practice for business entities to op to incorporate their businesses into companies limited by shares rather than continuing to perform their duties as sole prorietorships, companies limited by guarantee, limited liability partnerships (LLP) or partnerships. This means any decision that has to be made by the number of votes from owners. Thus, the managers are responsible and answerable for the companys loss. Advantages Limited liability - by far the most important . For e.g. While a private limited company offers many important advantages, there are also a number of disadvantages. One of the main reasons is that the company has to comply with the list of protocols and guidelines in order to operate as a PSU. Advantages and disadvantages of Private Limited Company - TaxGuru There is great flexibility in the management of affairs and the conduct of business. On the contrary, private companies are not subjected to any such obligation as they can operate privately and are liable to pay taxes only. Separate Legal Entity They take income from the profits of the business and the income is taxed at standard personal income rates. Advantages of a Private Limited Company No Minimum Paid-up Capital After the amendment of the Companies Act, 2013, private limited companies do not require a minimum paid-up capital. Mistakes and errors in business accounts and filings tax returns can cause heavy penalties, therefore you need to contact an accountant for professional services. Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. The team will get in touch with you soon.
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