What are the advantages and disadvantages of Private Limited Company?

Generally, there is a clash of opinion between the differences in LLP and Pvt. Ltd. Co., thus to note the advantages and disadvantages of Pvt. Ltd Co. are:

ADVANTAGES:

  • Less complicated legal formalities than a Public company;
  • Limited liability;
  • Perpetual succession;
  • Can undertake big projects owing to maximum membership of 200.
  • Easy transferability of ownership;
  • No requirement of a minimum share capital;

DISADVANATAGES:

  • Restricted trade of shares;
  • Complicated procedure of winding up of Company;
  • Difficult compliance formalities.

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