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Private limited companies (Pvt. ltd companies) are the best way to do business if you want to make profits and have limited liability. Apart from the benefits of limited liability and minimal compliance with statutory requirements, Pvt. ltd businesses offer the following:
Separate legal entity
An entity is a thing that has a distinct existence. A company is both a legal entity as well as a juristic person created under the Act. A juristic person can be defined as a person who is not an individual or a human being. A company is a legal entity that can possess property and incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts. A Pvt Ltd is therefore a separate legal entity from its members.
Live a life uninterrupted
Perpetual succession is the continued existence of a company until it is legally dissolution. Because a company is a separate legal entity, it is not affected by the death of any member. However, the company continues to exist regardless of changes in its membership. One of the most important features of a company is its ability to perpetuate succession.
Limited Liability
Limited liability is when a person is only legally responsible for a small number of debts owed to a company. Limited liability companies are different from partnerships and proprietorships in that the liability of members for the company's debts can be limited. The members' liability for company debts is therefore limited to the value of their shares. If a company is restricted by shares, members are only liable for the unpaid shares.
Also, check out Private Limited Company Registration in India.
Transferable shares are free and easy
A shareholder can transfer shares of a company that is limited by shares. Transferring shares of a company limited by shares is easier than transferring an interest in a partnership or proprietary concern. It is easy to transfer shares by signing and filing a transfer form.
Proprietary ownership
A company, being a juristic entity, can acquire, possess, enjoy, and alienate property in its name. As long as the company continues to be a going concern, no shareholder can claim any property. The company's property is not owned by shareholders. The true owner is the company.
Capacity to sue, be sued
Suing means to file legal proceedings against someone or bring a lawsuit in court. A person can bring a lawsuit against another person in their own name. However, a company can sue in its own name and can also sue.
Dual Relationship
A company can make valid and binding contracts with its members through the company structure. A person can also be a director or shareholder of a company while being employed by it. A person can be both a shareholder, creditor or director of a company, as well as an employee.
Borrowing Capacity
Companies have better options for borrowing money. It can issue both secured and unsecured debentures. They can also accept deposits from public sources. Banks and financial institutions will often provide large financial assistance to companies rather than to partnership firms or proprietary concerns.
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If you are keen on becoming a successful small business person, you are probably already contemplating studying at top-notch business schools abroad. An MBA degree is a clear choice, but would an EMBA be a better choice?
To compose your mind, you should first learn the differences between the two prestigious business degrees. Naturally, you'll also have to figure out if you fulfil the necessary conditions to be admitted for the level, and in the event that you can afford the tuition fee. We'll cover all of this and more, to make your choice easier.
MBA vs EMBA - What's the gap?
Masters of Business Administration or even MBAs are some of the most popular small business levels from the past ten years which continue to draw a great number of pupils, despite the high contest and pricey tuition rates.
First introduced at universities and colleges in the United States, now you can select from 2,500 MBA programmes from all over the world, a lot of them English-taught.
On the flip side, EMBAs or Executive MBAs have been all thought to be the best investments you can make for your future. Worldwide business colleges and universities introduced EMBA programmes to reply to the instruction needs of working executives, managers, supervisors, and other company leaders.
An EMBA (Executive Master of Business Administration) is much like a common MBA, but in fact, they are created for seasoned working professionals, particularly chief officers, managers or business owners. Because they are working people, EMBA students may attend evening or weekend classes, permitting them to finish the Master's degree within two decades or not.
Also, read about Executive MBA joint degree program by IIT Bombay and Washington University in St. Louis.
Class schedule and research length
The course schedules for a conventional MBA degree are less flexible. Most MBAs are full-time, students have intensive programs, which will not usually enable them to join the MBA having a normal job. An MBA generally requires two years to finish, but it can be extended to four or three years if you decide to research part-time.
EMBA students are offered enrollment assistance, meal delivery, textbooks, and other useful tools.
They also have the exact colleagues throughout the whole length of their course, in contrast to MBA students who usually have various classmates from 1 year to the other. In terms of networking, meeting new people annually is an unbeatable benefit for MBA students.
MBA degree application demands
Bachelor's degree in any area
Transcript of documents
At least 3 years of professional work experience
Experience in a manager role not compulsory, but it's favoured
GMAT exam score
GRE exam score
Minimum English language scores: IELTS Academic 6.0, TOEFL iBT 70, PTE Academic 60
Letters of recommendation
Resume/CV
Minimum age limitation (only at some universities)
EMBA degree application requirements
Remember the admission conditions for MBAs and EMBAs recorded above are general. Many universities may have additional criteria or they could require higher English language or GMAT/GRE test scores. Always check the programme research site or the university website for the official demands.
The Way to select between an MBA and an EMBA?
The fundamental Things Which You need to remember and that might help you determine are:
MBA courses normally have a predetermined schedule, in comparison to EMBAs, at which students attend classes in the evenings and on weekends.
Due to the class versatility, EMBA students can quickly combine research with work.
MBA students have a broader option of elective courses, compared to EMBA students.
Since EMBA students generally have o electives, it is possible to complete an EMBA in the identical period of time as an MBA.
Both study options offer you exceptional credibility in the company environment, enabling you to discover career opportunities in a wide range of industries. MBAs and Executive MBAs are recognized anywhere, and that means you aren't limited to finding work in your home country. An MBA or EMBA graduate usually earns a greater salary, ranging from 90,000 to 150,000 EUR per year on average.
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