Benefits of Company Registration in Pakistan

Benefits of Company Registration in Pakistan

Benefits of Company Registration in Pakistan

There are 3 forms of business i.e Sole trader, Partnership and Company   

Each form of business has its own pros and cons

Let’s discuss the Advantages of Company

ADVANTAGES

 

Limited Liability:  As a sole trader you are legally responsible for all aspects of business including loans and losses towards. If your business make a loss in sole trader capacity you will be personal liable including your personal assets, so running a business in sole trader capacity can be risky , whereas company is separate legal entitiy with limited liability so any debt on the company will be limited to its assets not the owner personal assets

 

Unlimited Life : Sole trader business will run as long as owner lives but company will be live even owner dies in that case ownership is normally transfer to legal heirs

Raising Capital is easier: Company has got sense of authority so raising capital is easier if the business is run in   capacity of company. Financial institutions also trust the companies more over other forms of business

Expansion: business expansion is easier as the maximum shareholders allowed is 50, so its easy to expand business.

 

Conclusion

 

Registering company and running business as a company is one of best ways to run business as a separate entity with no personal liability of owner coupled with ease to raise funds and expand business

 

 

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