Private Limited Company

A Private Limited Company is a legal entity that is created by way of registration as provided by the Companies Act.

Pros of Private Limited Company(PLC)

• A PLC is a legal entity that exists separately from its owner(s)
• The owners of the corporation enjoy limited liability. That is, owners of a PLC are not personally responsible for the debts of the PLC
• Can sell stocks and bonds which can generate additional capital
• The PLC can continue past the death of the owners
• Ownership is easily transferable through the sale of stock
• Fringe benefits

Cons of Private Limited Company

• The primary disadvantage of the corporate form is double taxation: the PLC pays taxes on any income and then when the corporation pays dividends to the owners (the shareholders), they also pay taxes on those funds
• Must file Article of Incorporation with the Registrar of Companies