Key Benefits
- ✔ Provides limited liability protection, ensuring that the proprietor’s personal assets are not at risk for business debts or legal obligations.
- ✔ Enables the raising of equity capital through the issuance of shares to venture capitalists, angel investors, or private equity firms.
- ✔ Grants a separate legal identity that allows the business to own property, enter into contracts, and incur liabilities in its own name.
- ✔ Ensures perpetual succession, where the business continues to exist as a corporate entity regardless of the life of the original proprietor.
- ✔ Enhances the brand’s valuation and professional standing, making it significantly more attractive for large-scale corporate and international contracts.
- ✔ Facilitates employee retention through the implementation of Employee Stock Option Plans (ESOPs), which are not available in a proprietorship.
- ✔ Offers better access to bank financing and institutional credit due to the rigorous regulatory and transparency requirements of a company.
- ✔ Offers better access to bank financing and institutional credit due to the rigorous regulatory and transparency requirements of a company.
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