Private Limited Company is the most prevalent and popular type of corporate legal entity in India. The ministry of corporate affairs governs private limited company registration in india. companies are incorporate and regulated under the act 2013 and the companies incorporation Rules, 2014. Indiafilling can help you with company registration across india at a very affordable price point.
To register a provide limited company, a minimum of two person to act as directors and shareholders are required. The shareholders of a private limited company can be a corporate entity or a natural person. Director can only be a living person id designated as a resident if he/she spends over 186 days in india.
Registering a private limited company has various advantages compared to a partnership firm or LLP as under.
A company can raise equity capital from persons or entities interested in becoming a shareholders. Hence a private limited company is a must entrepreneurs looking to raise money from angel investors, venture capital firms, private equity frims ang hedge funds.
A private limited company provides limited liability protection to is shareholder. In case of any unforeseen liabilities are created, it would be limited to the company and would not impact the shareholders.
A private limited company is legally recognised as a separate entity. Hence, a company can have its PAN, Bank accounts, Licenses, approvals, contracts, assets and liabilities in its unique name
A company has perpetual existence and never ends without reason. For a company to lose its existence, it has to be wound- up by the promoters or be wounded by by the government. Hence a company can only be wound up for reasons like non-compliance or failure to comply with rules and regulations.
As the ownership of a company is represented by shares - the ownership of a company can be transferred to any other legal entity or person in india or abroad easily - in part or whole. Futher, Since the shareholders control the board of directors, the Directors can also be replaced easily by shareholdersto ensure business continuity easily at all times.
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