Private Limited Company - 4 Advantages

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4 Benefits of Setting up a Private Limited
Company
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• Private limited company has been a successful
  business model for several companies over the
  years. Establishment of a private limited company
  brings various benefits including asset
  protection and other financial benefits. Take a
  look at these 4 benefits now

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3

• LIMITED LIABILITY
• Private limited companies are considered a
  single, separate entity. If something happens to
  a company, the members and their personal assets
  wouldnt be impacted by it. If the company
  becomes insolvent, company assets will only be
  used to pay off the debts.

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• PERPETUAL SUCCESSION
• Perpetual succession refers to business
  continuity. Theres a popular saying directors
  may come and go, members may come and go, but the
  existence of the company remains forever. Private
  limited companies possess this characteristic.

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• EASY TRANSFER OF OWNERSHIP
• When theres a requirement to transfer the
  ownership, all you need is to transfer or sell
  the shares to the one purchasing the company.
  This also facilitates change in ownership and
  management.

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• TAX BENEFITS
• Private limited companies are usually exempt from
  higher personal income tax rates. Forming a
  private limited company can bring in various
  tax-deductible costs and allowances too.

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• Establishing a private limited company is
  advantageous, but not for everyone. Understand
  your business objectives and determine if
  establishing it as a private limited company is
  best for you.
• For more details, visit www.e-sandhurst.com

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