In this article, we’ll discuss what a private limited company registration in India is? And what are the advantages of having one, once we are done with our private limited company registration.
A private limited company is one of the most commonly used entities that is suitable for carrying on a certain type of business on a certain scale level. In India, it’s a long-term objective. Now when you think about having one for yourself, you will need a private limited company registration done in order to keep going with the idea. The private limited company registration is done and incorporated under the company’s act 2013. The formation of a private limited company is formed as a purely separate and legal entity that is apart from its directors or the members. Any business which is under this type of structure is done by making an investment. This investment is made through the equity shares in the company. This has its own advantages of limited liability, of greater stability and the recognition. The very basic requirement for the incorporation of this private limited company in India is to have a minimum of two directors and two shareholders, both can be same.
Know the Advantages of a Private Limited Company in India
· LIMITED LIABILITY: In case, if the company is experiencing financial distress of any kind because of their normal business activities. Then, the personal assets of the company’s shareholders and directors will not be at risk of being seized by the creditors.
· SEPARATE LEGAL ENTITY: Any private limited company is a legal entity, and juristic person that is established under the companies’ act 2013. Therefore, this private limited company after being registered is has its own legal capacity to own its own properties as well as incur debts. And on the top of that the respective directors and the shareholders will not have any liability to the creators of this private limited company for any such debts.
· CONTINUITY OF EXISTENCE: The existence of a private limited company will never be affected by its owners. The owners may come or go with time but the company will keep running until and unless it is legally dissolved, because it is a separate entity or a person, it remains unaffected by any deaths or the departures of any of its members and continues to exist irrespective of the change in its memberships.
· MINIMUM NUMBER OF SHAREHOLDERS: The minimum number of the shareholders required to get a company registration online in India is just two in numbers.
· SCOPE OF EXPANSION IS HIGHER: A private limited company registration will give the various options for the borrowing of the funds. It can raise funds also by issuing shares or debentures and similar.
· EASY TRANSFER ABILITY OF OWNERSHIP: The shares of the private limited company by virtue of its ownership can easily be transferred to any other person by simply filing and signing a simple share transfer form. The price exchange may be anything they wish and will happen with a mutual agreement between the both parties. The infused capital can be easily taken back.
· OWNING PROPERTY: Because after the private limited company registration, it is considered a legal entity and a person on its own can own properties in its name also. No shareholders or the directors can claim it as their own property.
If you have any plans to apply for a private limited company registration in India then make a call to our Swarit Advisors, we can help you with proper guidance and step by step procedures. All you have to do is to make a call on our number or drop us an email.
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