Privileges and Exemptions available to a Private Limited Company

Privileges and Exemptions available to a Private Limited Company
A private limited company enjoys several privileges and
exemptions. It is therefore said to be an extension of partnership
but with the benefit of limited liability. Let us now see some
important privileges available to all private limited companies.

REGISTRATION OF FIRM:

REGISTRATION OF FIRM:
Registration of a partnership firm in India is not compulsory.
It is only optional. Indian Partnership Act, 1932, provides that if
the partners so desire, they may register their firms with the registrar
of firms of the state. The procedure for registration is explained
below.

ROLE OF SOLE PROPRIETORSHIP IN THE SOCIETY

 ROLE OF SOLE PROPRIETORSHIP IN THE SOCIETY
Consumers are the kings. They decide the success of a
business. Their needs, desires, expectations are to be satisfied by
the businessmen. Sole proprietorship occupies a pivotal role in
satisfying the multifarious needs of consumers regarding goods and
services. The day to day requirements of the consumers such as
food items, cloth, stationaries, laundries, provisions, books and
newspapers, medicines etc., are supplied by the soletrader form of
organisation. The soletrader who supply these goods are respected
by the society. Thus the soletraders have a responsibility to promote
the welfare of the society. Sole proprietorship has its own areas of
activity and continues to exist inspite of the development of bigger
organisations. This form of organisation has a social desirability
also. It provides valuable services to the society. Its social necessity
arises due to the following ways.

Sole proprietorship is suitable for the following business

Sole proprietorship is suitable for the following business:

1) Where small amount of capital is required,
e.g., Sweet shops, Bakery shops, Petty shops, etc,
2) Where quick decisions are very important,
e.g., Share-brokers, Doctors, etc.

GOVERNMENT INSTITUTIONS

GOVERNMENT INSTITUTIONS
In the present age, in order to expedite the economic progress
of the country the government also establishes and conducts
business.
Public sector enterprises are those enterprises which are
owned, controlled and operated by the central or state government
or by both. Such enterprises are run mainly to provide service to
the public. The performance of public enterprises is discussed in
the parliament. These enterprises are generally established as
 semi-autonomous or autonomous bodies. They are engaged in industrial
and commercial activities.

CO-OPERATIVE SOCIETY

Co-operative society

A co-operative society is a voluntary association of persons.
Persons hailing from the same locality voluntarily join together to
achieve a common economic objective. Any person can join the
society. There is no compulsion to become a member of a society.
A person can join a co-operative society whenever he likes and
leave it whenever he wishes.

JOINT HINDU FAMILY BUSINESS

Joint Hindu Family Business 

India is unique in the system of Joint Hindu Families.
A Joint Hindu Family comprises of father, mother, sons, daughters, grandsons and granddaughters.
They hold the property jointly.
They do the business under the control of the head of the family.
These families have been engaged in occupations like agriculture ,handicrafts, small industries etc.
These business units are known as Joint Hindu family business.
This system is found only in India.