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CA Chandan Shahi

Startups | Tax | Acc... • 4m

Why should a startup opt for a Private Limited Company only? 1. Easy Fundraising from Investors Investors & VCs prefer Pvt Ltd because they can get equity (shares) in exchange for investment. Proprietorships and LLPs cannot issue shares, making fundraising very difficult. 2. Limited Liability Protection The founders’ personal assets are safe even if the business faces losses or lawsuits. 3. Scalability & Expansion Pvt Ltd companies can expand easily by bringing in new shareholders or investors. 4. Perpetual Existence Even if founders leave or sell their shares, the company continues to exist. 5. Better Brand Image & Market Trust Pvt Ltd registration gives your startup more credibility with banks, vendors, and customers. 6. Tax Benefits Section 80IAC advantage under income tax act DM in case you are facing any issue in incorporation or compliance.

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