Advantage of pvt ltd company???

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sabitha (Querist)
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01 March 2013 what is the advantage of a private ltd company when compared to a proprietorship and a partnership firm??..are 50 members compulsory for a pvt ltd company????

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 March 2013 sabitha. 50 members is the maximum not the minimum limit for a pvt limited.

benefits in comparison to proprietorship/ partnership are as under:

1. limited liability

2. continuity in business. perpetual succession

3. better visibility in market/ acceptability in terms of dealing with a corporate.

but then there are several disadvantages too.

sabitha

sabitha (Querist)
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01 March 2013 can u let me know what may be the disadvantages?????then the minimum is 2????

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 March 2013 1. much more legal compliances

2. higher tax cost (MAT is applicable)

3. dilution of control

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