TYPES OF PRIVATE LIMITED COMPANY www.kanakkupillai.com #PvtLtdRegistration
What is a Private Limited Company
Table Of Content
Different Types of Private Limited Company Company Limited by Shares Company Limited by Guarantee
Unlimited Company
Comparison of These Three Types
Choosing the Right Type of Private Limited Company
Advantages of Pvt Ltd Companies
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What is a Private Limited Company?
A private limited company is a type of business entity that is owned by shareholders who have limited liability. It is the most common form of company formation and is a separate legal entity from its owners.
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Different Types of Private Limited Company Company Limited by Shares Company Limited by Guarantee Unlimited Company www.kanakkupillai.com #PvtLtdRegistration
Company Limited by Shares
This is the most common type where the ownership is divided among shareholders who own the company and their liability is limited to the amount of their investment. This type of company is usually used for profit-making and has features such as share capital and the ability to transfer ownership through buying or selling shares.
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Company Limited by Guarantee
This type is used for non-profit organizations where the ownership is divided among members who do not have any share capital and their liability is limited to the amount they have guaranteed to contribute to the company in the event of liquidation. This type of company has features such as having no shareholders and fewer regulatory requirements.
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Unlimited Company
An unlimited Company is a type of Private Limited Company where the liability of its members is not limited, meaning they can be personally liable for the company's debts in the event of liquidation. This type of company is less common and is usually used for smaller businesses. It has features such as no limit on the liability of its members and greater control over the company's operations. www.kanakkupillai.com
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Comparison of These Three Types
Company Limited by Shares is used for profit-making businesses with limited liability for shareholders, while
Company Limited by Guarantee is used for non-profit organizations with limited liability for members.
Unlimited Company is less common and used for smaller businesses with unlimited liability for members.
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oosing the Right e of Private Limited mpany
s to consider when choosing the right
Private Limited Company includes the ss's goals and objectives, the number and owners, the potential liability risks, and gulatory requirements.
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antages of Pvt Ltd mpanies
te limited companies offer a range of ntages to their owners. These include limited ity, tax efficiency, and increased credibility.
ted liability means that the company’s owners ot personally liable for the company’s debts iabilities.
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