Consider the Benefits of Establishing a Limited Company

1. Benefits of Setting Up a Limited Company You Must Know A limited company allows an entrepreneur to owe his assets and finances and keep in his custody distinct from that of business. Shareholders or investors have limited liability for the company’s debts to the extent in which they have invested. 

2. Thus, it is a risk-free investment causing no harm to the personal wealth of the owner. Following are a few potential benefits of Limited Company Registration in DwarkaMor Ø Discrete Legal Entity- A limited company has its own legal existence and acts as a jurisdiction person which is authorized by the act. A limited company acts as an individual in the eyes of law and can owe its own property, incur debts and possess a wide legal capacity. A limited company is a separate legal entity from its members. Ø Limited Liability- A limited company’s members or shareholders possess limited liability to the company’s debts, unlike in proprietorships and partnerships. Their liability is limited just to the face value of shares, irrespective of the debt amount. Ø Transferability of Shares- Shares of the company are easily transferable from one shareholder to another person. Thus, ownership of shares is easily transferable from one person to other just by filing and signing the share transfer form and passing it to the buyer with the share certificate.

3. Ø Property Retention- A Limited company is a legal entity andit can easily acquire, own and retain property in its own name. When a company is running its business, no shareholder can claim the property. In reality, shareholders are not the actual of the company’s property. Their ownership is limited to the percentage of shares they have invested in. The company itself is the owner of its property, not its members. Ø Right to Litigate and to be Litigated-A limited company is a separate legal entity and thus has equal right to sue or to be sued in its own name in the court of law. Ø Right to Borrow-A limited company has equal right to borrow funds in its own name. It can issue debentures, secured as well as unsecured. It has equal right to accept deposits from the public as well. Conclusion In the above article, you will get to know the key benefits of Limited Company Registration in Dwarka

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