What are the two advantages of a private limited company over a partnership?

Partnership and Private Limited Company, both are distinct organisation in terms of its formation as well the management. Choosing a right business structure is vital for directed growth of any business and this decision would depend on number of criteria. To answer the question, here are the two advantages of a Private Limited Company over a Partnership Firm:

• 1. Limited Liability: Private Limited Company is separate legal entity from its Directors hence Directors are not personally liable.

• 2. Improve Business Credibility: Registering Private Limited Company improves credibility of business compared to Partnership Firm as all database of Private Limited Company becomes easily accessible after incorporation.

If you are looking to choose a right entity structure for you, get in touch with experts at 1800 313 4151 or visit us at https://www.legalwiz.in/starting-a-new-business