How private limited company can be right for my business
URL title: The advantages of private limited company
Meta Description: A private limited company is the best-possible structure for your business. It provides more benefits than any other business entity
H1: Unsure about the ideal entity for your business? A private limited company provides more benefits than any other structure
H2: Forming a private limited company has many advantages
Focus keyword: private limited company
A private limited company is a business entity that is formed with a minimum of two directors and two shareholders or members. Opting for the right structure is vital as it can have permanent tax and legal consequences on your business. You have to choose a business structure based on factors like the type of business you are doing, the protection you need for your assets, tax implications, costs of formation and administration, etc.
Advantages of a private limited company
Forming a private limited company gives benefits to your business, which other entities, like sole trading or partnership, cannot provide. They are:
- A company is a separate legal structure: A private limited company is a legal entity that is established under the Company’s Act. When you form such a company, it is separate from the management and its owners. It can incur debts, enter into contracts, employ people, have its bank account, and even have a seal in its name. The owners are not responsible for actions undertaken by the company unless they were involved in the action with some fraudulent intention.
- The owners have limited liability: One great advantage of a private limited company is that the shareholders do not become entirely liable for all the debts and liabilities of the company. They are liable only up to the unpaid amount on their shares, or the amount guaranteed if it is a guarantee company.
- Permanent existence: Another benefit of a private limited company is that its existence is not impacted by the change of its members/shareholders. Its continuity will not be affected by death or resignation of its members. The company’s existence only terminates if it is liquidated by law.
- More opportunities for finance and business expansion: When you form a private limited company legally that is certified by professionals, your brand value increases. You get more options for raising finance from external organizations like banks or other financial institutions. Since there are more members in a private limited company, you can raise finance from internal sources also. It also enables you to tap new opportunities in the market and expand your business.
- Ease in formation: The minimum number of shareholders and director required for forming a private limited company is only two. The shareholders can also act as directors of the company. This makes it very easy to start a private limited company.
- A company can own assets: A private limited company can hold assets like property in its name. The shareholders do not have any rights over the company’s property.
- The right to carry legal proceedings: A private limited company is an independent legal entity and can undertake legal actions in a court of law under its own name.
- Increased credibility: When you form a private limited company in accordance with all the legal requirements, your business becomes more credible to investors. As a result of your improved standing, you attract more investment opportunities.
- Better taxation benefits: A private limited company enjoys better taxation privileges as compared to other business structures.
A private limited company is the perfect structure for establishing a flourishing business. 3ecpa will support you through all the processes of setting up your company. We will help you with business registration assistance, the preparation of relevant documentation, and all other legal formalities needed for the formation of a private limited company.
Question One
Studies have shown that the gender pay gap has reduced ever since 1980, but, at the same time, has remained relatively stable and persisted in the same period (Blau et al., 2018). For example, in 2018, women took home eight-five percent of what men took home for the same kind of work. The figure was arrived at based on a Pew research center analysis of median hourly earnings when it came to both part-time and full-time workers within the U.S (Graf, Brown & Patten, 2018). The estimate showed that it would take an extra thirty-nine days of labor for women in society to earn what men earned during 2018. The pay gap was relatively smaller for adults who were aged twenty-five to thirty-four for all the employees who were sixteen or more. At the same breadth, women who were aged twenty-five to thirty-four earned eighty-nine cents for every single dollar that a man earned over a similar period.
The gender pay gap has reduced but, at the same time, persisted during the mentioned period as a result of a variety of factors like occupational segregation, educational attainment as well as work experience. The reduction of the gap is mostly credited to the gains that women have made in most of the mentioned dimensions (Graf, Brown & Patten, 2018). However, several other factors that may be difficult to measure, such as gender discrimination, could contribute to the noticeable wage discrepancy. A 2017 Pew Research Center study found out that almost forty percent of women are said to have experienced discrimination based on gender at the workplace. The figure was much higher than what men experienced at twenty percent.
Question Two
Progressive researchers have emphasized economic explanations to explain the gradual retreat of couples from the marriage institution. On the other hand, conservative scholars have opted to stress on the fact that there is a shortfall in public policy (Blau et al., 2018). William Julius Wilson, a sociologist, argued that the move to a post-industrial economy beginning in the 1970s had the effect of undercutting the availability of suitable jobs for men within society, thus making the same men less desirable for marriage (Martin, Astone & Peters, 2014). On the other hand, political science scholar Charles Murray asserts that the increased generosity of government welfare programs has played a crucial role in the reduction of the need for male breadwinners within lower-income economic segments. The effect has thus been an erosion of the normative and practical significance of the marriage institution.
Marriage has persisted during the same period, even with the overall numbers gradually declining. The persistence of the marriage institution could be attributed to the presence of more conservative communities in the U.S., especially immigrant ones that firmly believe in the significance of marriage and raising children even in these reasonably liberal times (Martin, Astone & Peters, 2014). However, even though most people are still getting married, the divorce rates have increased over the years, and the number of children born in the course of such unions has declined over the decades. The decline is attributed to the rising cost of living, which pushes more couples to have less to no children (Blau et al., 2018). The most worrying trend is the rising cost of housing and rent, which has made more couples have a smaller residence, which is not ideal for raising large families.
Question Three
- a) Parents being entirely responsible for the care of their children.
Parents play an essential role in giving care to their young children. When a child is born, the mother and the father have a responsibility to protect and care for their children to promote the overall well-being of the child. In today’s world, parents, both the mother and the father, are engaged in different activities such as work and other roles in the community (Blau et al., 2018). Moreover, some parents lack the right knowledge and skills to promote their children’s emotional, social, physical, and economic well-being. Therefore, the responsibility to care for children should not rely entirely on parents alone. The government and other local, states, and national level organizations play a vital responsibility in child care. Some of the parenting resources available include school-based classrooms, childhood programs, family networks, and well-child clinics. Supporting parents in child care helps to enhance healthy early childhood experiences, help parents build strong parent-children relationships, and promote children’s positive outcomes.
- b) Employer-Financed Day Care
As we note from the book The Economics of Women. Men, and Work, parents majorly perform different duties and roles both at work and at home (Blau et al., 2018). Currently, women are engaged in economic production through various activities at the workplace. Challenges arises when they have children to takecare. Parents have to pay for their children to receive care as they work. However, parents spent a lot on childcare (around $9, 500 a year regardless of the number of children). As a result, the parent’s total income after tax is reduced. Other parents are lucky because their employers offer childcare services, either on-site or near-site. Nonetheless, only 2 percent of the employers in America contribute to employees’ child daycare through vouchers and subsidies. Since the recession, employers have not adequately offered daycare benefits to employees. Lack of employer-financed daycare has imposed a high cost on families, businesses, and the economy. Therefore, organizations and companies should find a way to promote employer-financed daycare to increase productivity and employees’ performance.
- c) Government-Financed Day Care
The government is less concerned about career-related incentives. Governments are run by politicians who are driven by personal interests, hence more likely to commit to low-powered incentives (Blau et al., 2018). This is because government provisions are associated with less competition. While childcare is a private good, similar to education and health care, the government cannot spend on child care. Despite child care being vital for the future generation of workers, the government does not directly fund these services. In most cases, the government engages in offering subsidies and incentives for caregiving facilities and teachers to reduce the cost incurred by parents for caregiving. However, the rent-seeking theory does not explain why the government engages in operating schools and hospitals (Blau et al., 2018). Despite children being public goods, which need care from not only the parents but also other organizations such as the government, the idea of child daycare is a private affair. Employers and owners of firms enjoy the benefits of child care services. Today’s market and economies permit only parents and employers to cater for daycare expenses.
References
Blau, F. D., Ferber, M. A., & Winkler, A. E. (2018). The economics of women, men and work. Pearson Higher Ed.
Graf, N., Brown, A., & Patten, E. (2018). The narrowing, but persistent, gender gap in pay. Pew
Research Center, April, 9.
Martin, S. P., Astone, N. M., & Peters, H. E. (2014). Fewer Marriages, More Divergence:
Marriage Projections for Millennials to Age 40. Urban Institute.