Articles tagged with: private limited company in Indonesia

Reasons Why You Should Opt For A Private Limited Company

You might wonder why should one select for Private Limited Company when there are other choices such as sole proprietorship and One-Person Business. To be able to answer this specific question a few benefits of a Private Limited Company are cited below which may convince you to start your own company.

A private limited company in Indonesia is a legal entity separate from that of its members and is a juristic person established under the Companies Act. Private Limited type of organization has broad legal ability and can own land and incur debts. The death, insanity, incapacity, or bankruptcy of its shareholders or directors doesn't affect the existence of the company at all.

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Private Limited Company is an independently owned and accountable business entity. The liability of the shareholders is extended to the business shares and resources. In the event, if the institution incurs any reduction, the shareholders won't suffer beyond their outstanding share capital. It protects your assets.

Private Limited Company has a choice of ESOP, where institution issues shares to its employees to be able to motivate or reward them. LLP or Sole Proprietorship does not have the option of ESOP.

When a Private Limited institution is formed it's possible to generate a valid contract with any of its associates. A person at the same time could be a shareholder, director, and also an employee of the institution.

Initial financing and investment is the prime element for establishment set-up. Private limited companies tend to increase funds easily. Funds are crucial for developing and maintaining the enterprise. Banks readily provide loans to private limited companies. Venture capitalists and angel investors prefer to finance private limited companies.