We are Company Registration Consultants in Kadri, Mangalore
Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. It is one of the most popular legal structure option for businesses in India. A Private limited company has a minimum of two members and a maximum of fifty members. A director of a private limited company has limited liability to creditors. In case of a default, banks / creditors can sell only company's assets but not the personal assets of a directors. A Private limited company is considered one of the most popular corporate entity amongst the small, medium and the large businesses in India due to its various advantages.
AS PER THE COMPANIES ACT 2013, THE FOLLOWING ARE THE TYPES OF COMPANIES THAT CAN BE INCORPORATED IN INDIA
1. PRIVATE LIMITED COMPANY
2. PUBLIC LIMITED COMPANY
3. ONE PERSON COMPANY
4. SECTION 8 COMPPANY OR NGO OR NON PROFIT ORGANISATION
PRIVATE LIMITED COMPANY
Private Limited Company is the most popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014.
To Form a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
The average time taken to complete company formation is about 10 working days, subject to processing time taken by the MCA Centralized Registration centre.
ADVANTAGES OF FORMATION OF THE PRIVATE LIMITED COMPANY:
1. SEPARATE LEGAL ENTITY
2. PERPETUAL SUCCESSION
3. LIMITED LIABILITY
4. FREE & EASY TRANSFERABILITY OF SHARES
5. OWNING PROPERTY
6. CAPACITY TO SUE AND BE SUED
7. DUAL RELATIONSHIP
8. BORROWING CAPACITY
STEPS INVOLVED IN THE FORMATION OF A PRIVATE LIMITED COMPANY
1. OBTAINMENT OF DSC (DIGITAL SIGNATURE CERTIFICATE) FOR ALL DIRECTORS AND