Tax benefit
This query is : Resolved
14 April 2013
what is the benefit to open pvt ltd. co instead of partnership firm
14 April 2013
Dear Madhu
In terms of Income Tax benefit it does not seems any benefit on forming Pvt. Ltd. Co. but in context of other benefits, there are lots of benefit of forming a Pvt. Ltd. Co. over Partnership Firm Like:
1. Corporate Status.
2. Easy Loan Funding.
3. Easy Fund Raising.
4. Limited Liability of Shareholders.
5. Continuity of business.
6. Min. 2 Shareholders can start.
7. Wider scope of business expansion.
In terms of Income Tax benefit it does not seems any benefit on forming Pvt. Ltd. Co. but in context of other benefits, there are lots of benefit of forming a Pvt. Ltd. Co. over Partnership Firm Like:
1. Corporate Status.
2. Easy Loan Funding.
3. Easy Fund Raising.
4. Limited Liability of Shareholders.
5. Continuity of business.
6. Min. 2 Shareholders can start.
7. Wider scope of business expansion.
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