The name of the company should end with ' (Proprietary) Limited' or ' (Pty) Ltd'. This is especially true when compared to self-employed business owners or managers in private companies.

Drawbacks include bookkeeping complexities and privacy issues. Simply put, should your company run into trouble, your personal assets are secure. The biggest benefit of forming your own company is limited liability protection. But a community interest company is not the only form of business available for those looking to pursue a social enterprise – they might also be set up as …

Home » Pros and Cons » 14 Pros and Cons of a Public Limited Company. A community interest company (or CIC) is a special form of non-charitable limited company, which exists primarily to benefit a community or with a view to pursuing a social purpose, rather than to make a profit for shareholders.. Therefore, the business is entirely separate from the people who own and manage it.
This is compared to 20-45% Income Tax paid on profits plus Class 4 National Insurance paid as a sole trader.

Jan 14, 2017 Apr 1, 2016 by Brandon Gaille.

In case the private limited company has debt and losses, the only liability by the shareholders is only up to the amount they individually invested. 14 Pros and Cons of a Public Limited Company. As a limited company, you won’t have to pay Income Tax on account like you do as a sole trader. The pros and cons of being a Limited Company. A limited company is treated as a separate legal entity; a legal ‘person’ in its own right. As a limited company, you’ll pay 20% Corporation Tax on profits (until profits exceed £300,000 a year) and no National Insurance. A private limited company has many advantages including limited liability, ease of raising capital, ease of setting up, separate legal identity, tax relief, and credibility when seeking new business or entering into transactions. Many people are unsure whether to become a Limited Company or not, as there’s no legal obligation to do so like becoming VAT Registered and also I don’t think many people actually know what the pros and cons are – so I thought I’d write a quick blog about it!

Disadvantages of a private limited company There are some disadvantages of private limited company of which you should be aware. The advantages of registering as a private company are as follows: The company has a perpetual lifespan and can continue if one of the owners dies. 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. As stated by section 2 (28) of the companies ordinance 1984 a private Limited company relates to a company which according to its Articles of Association: Confine the rights to transfer the shares to any person The members should be up to 50 in total Avoid any interaction to the general public in order to pledge for the shares

Their personal assets, the salary earned as an employee of the company, real estate properties, etc. Pros and Cons of a Private Limited Company Pros Limited Liability.