WHY PRIVATE LIMITED COMPANY

Business Venture is a huge investment and as such zeroing in on the appropriate structure is the most important bargain which needs to be realized first. This would depend on a variety of considerations like the nature of business, the human resources involved, the desired level of control by the top management, the capital requirements and the fund raising, however, the top priority facet is the kind and extent of liability the owner wants to take. The biggest decision of all is the kind of business structure to be selected, namely, One Person Company, Private Limited Company, Limited Liability Partnership,Public Company, etc. All these structures have their advantages and limitations and these need to be examined carefully; however having a private limited company is beneficial over LLP and Partnership and a one person company.

The Private Limited Company in India is the most popular form to start a business venture when you are planning on one as there are major advantages associated with it but at the same time a limited liability partnership is preferred when you are approaching the market with a new idea or service which you may believe might just not work, even then starting with a private limited company is more beneficial because changing over from a company is more convenient than vice versa. A Partnership firm on the other hand is very restricted both in it’s operations and approach and does not enjoy major growth possibilities due to the same, hence even in a family business as the minimum requirements for Private Limited Company is the same as a Partnership Firm hence it is better to start a Private Limited Company.