One of the highly advised strategies to launch a business in India is to establish a private limited company. This kind of business offers its stockholders limited liability along with some ownership constraints. An LLP has partners who are the company’s owners and managers. Directors may be different from shareholders in a private limited business, however.
Reduced risk to personal assets: In a private limited corporation, the liability of the shareholders is constrained. This means that as a shareholder, you will only be responsible for covering the company’s debt to the degree of your own contribution. Since the shareholders are not personally liable, they are not required to use their own assets to cover the company’s liabilities.
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