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Benefits of conversion from sole proprietor to company?

AUDITOR VINOTHKUMAR (a) (870 Points)

29 September 2012

Dear Sir/Madam,

Pls. Advice me...

What re the benefits of converting a sole proprietorship into private limited company.........?

Thanks advance

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1 Replies

shaleen vyas (student) (37 Points)
Replied 01 October 2012

Hi vinoth, there are pros and cons in each type of business structure, in private company benefits are as follows 1. limited liability of member 2. better financing options 3. carry forward of losses in income tax act 4. a proper code of governance that is companys act 5. a frame work to work upon defining the capacity to act. 6. future expansion benefits 7. various big groups ,psu look forward to deal with company types of structure list is endless . but if one want to enter into the private company format he should be better organised and knows how to handle corporte body structre.