You have a sound business plan and are soon to make the leap. Excellent! One of the really quite significant early choices you will have to make is choosing the right structure for your company. Most small businessmen choose a private limited company. But what in the world is it, and do you wish to do so? This article, by startup consultant Startupflora, simplifies the advantages and disadvantages of a private limited company into terms so easy that even school kids can understand!
Imagine a bunch of mates coming together to build a lemonade stand. A private limited company is the same, but bigger. It's a company where a group of people (your mates) come together and build a company. Their ownership is split up into shares, like pieces of the lemonade stand. The shares aren't traded on the stock market – that's why it's "private."
But now let's discuss the "good" stuff – why exactly a private limited company is so cool with so many:
Okay, now let's talk about the "cons" – things that will make a private limited company less attractive:
Don't downplay the importance of making the right business structure choice. A private limited company is perfect for businesses that wish to expand, issue shares, and limit liability. But better safe than sorry to make an informed choice and compare the pros and cons against your own personal needs and circumstances.
Startupflora being a startup consulting firm, can assist you with PVT limited registration, . We provide a complete end-to-end company registration service so that everything goes on as planned without any obstruction. If you must register PVT LTD company in India, want to know how to register, or simply want company registration guidance in India, we are here. We can assist you on how to register PVT LTD company and walk you through all the steps. Call us now for a consultation!
Disclaimer: All payments should be made to the company account
Important Note: StartupFlora is a consultancy service provider specializing in startup consultation. We are not associated or in collaboration with any Government/Non-Government Agency / Institutions / Organisation / Department. For service payments, please ensure all transactions are made directly to our official company account.