BENEFITS OF LIMITED COMPANY

BENEFITS OF LIMITED COMPANY

A Limited Liability Company is an incorporated business entity registered under the Companies Act, 2013. An incorporated business entity or a Limited Liability Business Form has many benefits compared to unincorporated business entities.

Company It is the oldest incorporated business structure in India and its main benefits are:

I. Acceptance:

A limited company is the most accepted business organization in India as its structure is well known to the public.

II. Limited Liability

Like any other incorporated business, a limited company is a limited liability organization. The owner's liability is limited to the extent of shares held in the company and ends once he pays for the shares.

III.Personal Assets Protection

Since the liability of owners is limited, their personal assets are protected against business risk as the company's liability is not the owner's liability.

IV.Perpetual existence

Assets and liabilities of a company belongs to itself and do not belong to the shareholders. Hence, the company will continue to be in existence even if the owner changes.

V.Can sue and be sued

A limited company is like an artificial person created by law. Like any other person, it can sue and be sued before the court of law. This means that if a company defaults, others can take legal action against the company and likewise, the company can take legal action against the defaulters.


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