Benefit of forming company

05 March 2014

plz let me know.... y we sud form a pvt ltd co.??? wat r d advantage of forming a pvt ltd co. over the proprietorship or partnership firm..??

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sushil kumar ( CA Final-Audit Assistant) (528 Points)
Replied 05 March 2014

Benefits of forming pvt ltd:

1. It has a limited liablity. Hence it secures your personal assets in case of lawsuit.

2. Perpetural succession- member dies but company go on forever.

3. Name protection- You can protect your business name.

4. Credit buildup- In compare to proprietorship or partnership, Credit worthiness of company is more.

5. Tax relaxation

A lots of benefit, if you forms a pvt ltd.

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