The limited company business structure is the second most popular in the UK. Disadvantages of a private limited company There are some disadvantages of a private limited company of which you should be aware. Private Limited Companies enjoy the advantage to carry out legal proceedings and to bring a suit in the court of law. Their personal assets, the salary earned as an employee of the company, real estate properties, etc. Its credit standing is lower than that of a public company. Pros and Cons of a Private Limited Company Pros Limited Liability. Limited Company Accounting & Resources 5 advantages of a limited company. The advantages include tax efficiency, separate entity and professional status. Disadvantages of Private Limited Company • Registration Process Private limited company registration on average takes about 10 – 20 days and costs Rs.13000 (all inclusive) through STARTUPEDGE.IN. Therefore, the financial and managerial resources of a private company are comparatively limited. The 4 disadvantages of a private limited company: An up to date guide. Hence, registering a private limited company involves a process and costs which are not applicable to an unregistered entity like proprietorship. Just like any other type of person, a company being an independent legal entity, can initiate legal action against any other person and similarly can be sued in the court of law. Some disadvantages include complex accounts, public records and accountant fees. By … There is more paperwork and time associated with running a limited business than when operating as a sole trader, which can be off-putting for some. Disadvantages of a Private Limited Company: One of the main disadvantages of a private limited company is that it restricts the transfer ability of shares by its articles. A private company suffers from the following limitations: 1. In a private limited company the number of members in any case cannot exceed 200 . As the director of a Private Limited Company, you will also have a number of legal duties, including an obligation to safeguard the company’s assets. To find out more about the advantages and disadvantages of a Private Limited Company, please get in touch. Disadvantages of Private Limited Company. Advantages and Disadvantages of Setting up a Private Limited Liability Company. Advantages and Disadvantages of Setting up a Private Limited Liability Company. However, operating as a private limited company is not ideal for all businesses, especially micro or small enterprises. Private limited company is an ideal business entity for a majority of medium and large sized business, as it offers a host of advantages from liability protection to easy transferability. 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