Common Misconceptions About Pvt ltd Companies
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1.
Fact:
Shares can be easily transferred, making the recipient the new owner.
Myth:
Transferring shares in a private limited company is difficult.
2.
Fact :
Minimum 2 Directors and Shareholders Required
Myth:
A single person can start a Private Limited Company.
3.
Fact 3:
Limited Liability Protection for Owners
Myth:
Owners are personally liable for company debts.
4.
Fact :
Compliance is Mandatory
Myth:
Once registered, there are no legal obligations.
5.
Fact :
No Minimum Turnover Required
Myth:
A Private Limited Company needs a high turnover to stay active.
6.
Fact :
Foreign Direct Investment (FDI) is Allowed
Myth:
Private Limited Companies cannot receive foreign investments.
7.
Fact :
‘Pvt. Ltd’ is Mandatory in the Name
Myth:
A Private Limited Company can operate without adding ‘Pvt. Ltd.’ to its name.
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