(i) Limited Liability- A private limited company exists as separate legal entity as from its members. Therefore, the limited of the members of the private company is limited to their share only. (ii) Perpetual succession- The perpetual succession means, the life of the company shall continue to exist even with the death of all members and the life of the business continues. (iii) Separate legal entity- A company is a separate legal entity in the eyes of law, whereas it is capable of owning its funds and other properties. (iv) Easy transferable Ownership- The shares of the private company can be easily transferred to a company. The transferor can simply file and sign the share transfer form and a share certificate are sufficient to transfer ownership of a company. (v) Capacity to sue- Being a separate legal entity the company can sue in its name and be sued by others.
Manish Kumar
What are the advantages of the private limited company?
Kindly let us know the advantages of the private limited company.
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