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Group presentation by Laylo Qarshiyeva Omonov Asliddin Qudratilloyev Sardor.

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Presentation on theme: "Group presentation by Laylo Qarshiyeva Omonov Asliddin Qudratilloyev Sardor."— Presentation transcript:

1 Group presentation by Laylo Qarshiyeva Omonov Asliddin Qudratilloyev Sardor

2

3 Q1. Why are about 95% of Indian companies private limited? Private limited company – a business that is owned by shareholders who are often members of the same family; this company cannot sell shares to the general public.

4 What advantages do private limited companies have in India? A private limited company in India is a company which is held by a small group of people, with a minimum of 2 (two) A minimum of 2 (two) directors are required to set up a private limited company in India, with at least 1 (one) director being an Indian resident. #1 Less risk http://www.dandreapartners.com/ Limited liability Less risk

5 2.Simple and easy to set-up No specific approval of the government for foreign investors (there are some exceptions They can be established within 2 weeks. It can be 100% owned by a foreign shareholders Share of registered foreign companies across India in financial year 2022, by industry (http://www.dandreapartners.com) #2 Simple and easy to set-up

6 3.Easy transferability of shares: Unlike other forms of legal entities that can be set up in India, shares of a private company can be easily transferred as its existence is not dependent on its shareholders or directors. This gives more flexibility and added liquidity to foreign investors.(in India) 4.Tax Advantage: Setting up a private company is more tax advantageous than other forms of legal entities that can be set up in India. Recently, there have been various subsidies introduced by the Government of India to reduce the corporate income tax payable by a private limited company in India. In general, the rate of corporate income tax in a private limited company in India ranges from 15%-30% which is dependent on the turnover and business sector of the company. Source - http://www.dandreapartners.com/

7 Advantages Of A Public Limited Company

8 Raising Capital Through Public Issue Of Shares  This is the main advantage of a public limited company. A public company can raise money by issuing shares to the public. It can also get a loan from a bank or other financial institution by pledging its assets as collateral.

9 Prestigious Profile And Confidence  A public limited company is seen as a prestigious status symbol. It gives the public confidence in your company and can increase public awareness of your business.

10 Transferability Of Shares A public limited company has public shareholders who can buy or sell shares in the company without having to ask for permission from the directors. This is known as ‘transferability of shares’ and it allows public companies to attract investors more easily than private companies, which have restrictions on share transfers

11 Growth And Expansion Opportunities  A public limited company is one of the most common ways for smaller companies to go public. They can raise funds for expansion by selling shares to the public and raising money through debt.

12 Exit Strategy  If you own a public limited company and want to get out of it for some reason, you can sell your shares on the public market. This is a good way to make money from an investment as well as giving yourself an easy exit strategy if things go wrong.exit strategy


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