Wednesday, 11 January 2012

what are the advantages and disadvantages of a private limited company?

ADVANTAGES

  • limited liability
  • minimum of 1 director + 1 shareholder
  • easy to set up/ affairs still private
  • easier to raise capital/ borrow from bank
  • death of shareholder has no effect on company
DISADVANTAGES
  •  cannot sell shares to public
  • more regulations to comply with
  • account procedures may be more costly
  • death of shareholder has no effect on company
  • share transfers need agreement of all

No comments:

Post a Comment