Private Limited Company Registration in Coimbatore
Advantages of pvt ltd company :
Private Limited Company Registration is easy to set up.
Limited Liability - The benefit of private limited companies is limited liability. Private limited companies are separate entity, and make the company responsible for all debts. If anything happens to the company, its members are not personally affected; members are only liable for unpaid shares. Limited liability is where a person's financial liability is limited to a fixed sum.
Business Continuity - Private limited companies enjoy permanent succession because the company is its own separate legal entity. Directors act as employee of the company so therefore, do not effect the company if they leave. And also In the event of a death or resignation, the company’s AOA allocate the shares to legal heirs automatically.
Raising new capital/ Investment - Whereas sole proprietor and partnerships generally have to raise new funds from their own resources, companies can able to raise capital by issuing new shares. The new shares can be offered to existing shareholders or new investors, by Venture capitalists and private equity funds.
Separate Legal Entity- private limited company can hold and deal with any type of tangible & intangible property in its own name. private limited company can enter into agreements, contracts, on its name. On account of the independent existence, the creditors of the company can recover their money only from the company and the property of the company. They can't sue individual members.
