Solubilis - Private Limited Company |
A type of company that offers limited liability or legal protection for its shareholders but that places certain restrictions on its ownership. Usually restrictions are defined by regulations / laws are meant to prevent any aggressive takeover try.
Major ownership restrictions are
- Shareholders cannot sell or transfer their shares without offering them first to other shareholders for purchase
- Shareholders can't share their shares to public
- No. of shareholders cannot exceed a fixed figure (ie 50 as a common)
A private company is preferred by those who wish to take advantage over limited liability, at same time control over the business with limited circles and maintain their privacy throughout the business.
Here are some pros & cons that will ensure in the business,
Pros
- Limited Liability
- Continuity of existence
- Less Legal Restrictions
Cons
- Shares will not be easily transferable
- Not allowed to public to subscribe shares
- Scope for promotional frauds
- Undemocratic Control
Solubilis is offering you the best services of Company Registration in India, Company Formation, Company Incorporation etc., at affordable cost.
Check more details at our website http://onlinecompanyregistration.in/
Great Blog having nice information on Private Limited Company.. Thanks for sharing and keep blogging...
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