private limited company - 4 advantages
TRANSCRIPT
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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LIMITED LIABILITY
Private limited companies are considered a single, separate entity. If something happens to a company, the members and their personal assets wouldn’t 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. There’s 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 there’s 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
www.e-sandhurst.com