Tanveer Md Masood
(Indispensable)
(361 Points)
Replied 31 October 2012
Dear Ms.Bhakti,
The major advantage of a Private limited company comes in the form of limited liability point where in case of liquidation the assets of shareholders are not liable to be seized by the creditors. Another advantage is the perpetual succession wherein directors and shareholders might change but company goes on for ever.The process of raising capital is less cumbersome and easy compared public cmpany.Moreover, any two directors can start a private company and the number shreholders can be atmost 50. Managing directors can continue even after five years .
BHAKTI
(Student)
(56 Points)
Replied 31 October 2012
Thank U sir. and tell me drawbacks also from such conversion.one i know that flat 30% tax rate on profit will aply.
CA Darshak Shah
(Practicing CA)
(1889 Points)
Replied 03 November 2012
CAclubindia
