5 myths and facts about Pvt ltd company

Ebizfiling

Myth: Starting a Pvt. Ltd Company takes time and money.

Facts:Incorporating a Pvt Ltd Company takes under two days and is now cost-efficient with no capital requirement.

Myth: You'll need to pay higher taxes in a Pvt. Ltd company.

Facts: Private Limited Companies enjoy tax deductions and exemptions, often resulting in a tax rate that is comparable to or lower than individual tax rates.

Myth: An audit is not needed for other business entities

Facts: Many business entities, like sole proprietorships, partnerships, and LLPs, need an audit if their turnover exceeds certain limits, just like Private Limited Companies.

Myth: A Pvt. Ltd Company is not ideal for Startups

Facts: A Private Limited Company is great for startups because it offers limited liability, easier funding, and better credibility with investors and clients.

Myth: The process of closing a Pvt. Ltd Company is complex and takes too long

Facts: Closing a company used to take months, but now the MCA's Fast Track Exit Scheme speeds up the process.

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