Benefit of Incorporation of Private Limited Company
Register Company Pune India| Biz Iuris Consulting India Pvt. Ltd.

Benefit of Incorporation of Private Limited Company

Free & Easy transfer ability of shares:-

Company act states that “Shares of a company limited by shares are transferable by a shareholder or any other person. The transfer is easy in comparison to the transfer of interest in enterprise run as a proprietary concern or a partnership. Members Can sell their share at any time if they are willing, on the open market or stock exchange.

Borrowing Capacity:-

A company can enjoys good avenues for borrowing of funds. It can issue debentures, secured in addition to  unsecured and can also accept deposits from the general public, etc. Even banking and financial establishments prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.

Corporate personality:-

A company is a real entity with corporate personality so it redundant bears its own name, has a seal of its own, acts under the name,  and assets are separate and distinct from the ones of its members. Therefore it is capable of owning property, borrowing money, having a bank account, incurring debts, entering into contracts, employing people,  and suing or being sued in the same manner as an individual.

Limited Liability:-

The Companies Act provides the advantage that  the corporation’s members  are solely liable to contribute to the assets and liabilities. The privilege of having limited liability for its members is one of the considerable reasons for establish an incorporated company.

Capacity to Sue and Be Sued:-

To being  a body corporate, Company can sue and be sued by its own name. To sue, means to corporate body legally proceedings against (a person) or to bring a suit in a court of law. In addition, a company being an independent legal entity can sue and also be sued in its own name.

Perpetual Succession:-

The main advantage of a incorporate Company never dies, except it wound up as per the law. Company is a separate legal entity from its members, it never dissolved when its member leave the company. It  means that the members of a company may keep changing from time after time, however that shall not affect its continuity.

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