Definition
Equity financing is a method of raising capital for a business or project by selling ownership stakes, or equity, to investors in exchange for funds. Equity financing allows businesses to raise funds without incurring debt obligations and provides investors with ownership interests in the company, entitling them to share in profits, voting rights, and potential appreciation in the value of their investments. Equity financing is commonly used by startups, growing companies, and entrepreneurs seeking capital for expansion or development.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.