difference between partnership firm and private limited company
Advantages of registering a Private Limited Company
1. Liability will be limited in private limited company : - this means whatever we have invested in the business only that amount will be at risk, our personal assets will not be at risk. However in partnership the personal assets of the partners can also be seized because of business liability.
2. Same name cannot be taken by any other private limited company while in partnership this name protection system is not available and anybody can keep the same name for his business too.
3. Private equity investors prefer to invest in private limited company only. they don't invest in partnership businesses.
4. In Order to secure orders from foreign countries private limited is helpful as all its data is available online and foreign companies feel safe to transact wil private limited companies.
1. Liability will be limited in private limited company : - this means whatever we have invested in the business only that amount will be at risk, our personal assets will not be at risk. However in partnership the personal assets of the partners can also be seized because of business liability.
2. Same name cannot be taken by any other private limited company while in partnership this name protection system is not available and anybody can keep the same name for his business too.
3. Private equity investors prefer to invest in private limited company only. they don't invest in partnership businesses.
4. In Order to secure orders from foreign countries private limited is helpful as all its data is available online and foreign companies feel safe to transact wil private limited companies.
