Ltd. company

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 Sir,

Right now I am running a partnership firm. We have good future plans for our business like start manufacturing and will also involve in online retail business. So my question here is that I want to convert my firm into Ltd. Company rather for Pvt. Ltd. company. Than want would be the implication for such initative ? My motive behind to convert is that I will get good funding opportunities in future course of my business. Right now I am start-up firm in book trading. In my situation what would be the best practice, a pvt comapny or Ltd. Company? I do not want to go with LLP.

CA Sumat Singhal

CA Sumat Singhal (Expert)
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29 September 2011 Sir,
in my opinion PVT LTD company would be a better choice in your case. As you will be required to follow a lot of compliance in case of public company unlike pvt company ans as far as funding is concerned there are lot of options available to raise funding.
Kindly let me know whether this solution has solved your query.
Regards,
CS Sumat Singhal

RG - A Helping Hand

RG - A Helping Hand (Expert)
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29 September 2011 Agree with Expert.

Still i would advise you to go for public company path for true expansion of ur business.

RG

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2011 Thanks for your relies. I am planning to start a manufacturing unit and also want to move in online retail business. For this i have big plans which involve high expenditure. Under this context, what will be the best option for me ? If i plan to raise money from public issue i think i have to run my co. as ltd for certain period of time with profit than only i can raise mony from this. I think if i first go with pvt. ltd. and afterwards move to ltd. it will i think waste of time and expenditur of conversion.
What you suggest?

Querist : Anonymous

Querist : Anonymous (Querist)

CS GURVINDER SINGH

CS GURVINDER SINGH (Expert)
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04 October 2011 If you have good funding oppurtunities then go for Limited Company, bcoz
- there is no limit on no. of shareholders in Ltd Co. So you can raise money from as many people you want.(pvt co have limit of 50 shareholders)
- Further you can also go for Public Issue as you mention in your context. (private ltd co can not go for public)
- can easily transfer shares