Amazing Benefits Associated with a Private Limited Company
Private Limited Company
What concept strikes your mind whenever you come across the words “private limited company”? Yes, it is none other than a firm where you need to prove yourself and will be paid accordingly. But, there are some more important points that you must not refrain from considering, especially when operating in India. Want to know about them in detail? Here they are…..
Liability of any Private Limited Company
Private limited companies refer to businesses whose shares cannot be traded publically. Regardless of the size, their liabilities are limited to the total shares held by the members associated. Being one of the most popular forms of business registrations in India, the registration for the same can be easily performed with a minimum of two people.
The following characteristics help in making these companies among the most recommended business entities:
- Liability protection for the shareholders
- Ability in terms of raising equity funds
- The separate legal entity status
It is applicable for all private companies that are either professionally managed or family businesses.
What are Some Minimum Criteria to Fulfill?
There are certain criteria that every private limited company must fulfill. Without fulfilling them, there may be chances that the overall establishment of the business may get disrupted. Also, carrying on with the overall management of the firm may become difficult. Those minimum criteria include the following:
- Minimum two adult persons as directors
- One of them has to be a permanent citizen of India
- The other may belong to any offshore country
- It is essential to have two shareholders. The shareholders may be either natural people or artificial entities recognized legally
Once the above-mentioned criteria get fulfilled, it will become easy to move ahead with the registration process.
Peep into the Registration Process
Are you looking forward to register your company as a private limited company? If yes, then it is high time to consider the fact that the procedure is a bit complicated. Still, taking help from experts will help in making every step seem much easier. The step-by-step procedure has been mentioned as under:
- Obtaining a Digital Signature Certificate and DIN (Director’s Identification Number)
- Confirming about the availability of the name
- Successful filling of the form SPICe+INC-32 for convenience
- Filling up of e-MOA and e-AOA
- Last but not the least, completion of the PAN and TAN applications
- Allotment of GSTIN
Once done successfully with the registration process, it will become easy to run the company as desired. Interested to know about some lucrative benefits that are associated with a private limited company? Here they are…
What are Some Exclusive Advantages Associated with a Private Limited Company?
There are innumerable advantages associated with a private limited company. Below are some of the remarkable ones for which maximum investors prefer registering their companies as private limited:
- Unlimited capital to invest – First and foremost, there is no minimum amount of money specified to invest in the case of a private limited company. It may be any amount of money ranging from ₹5,000 to crores. It depends on the overall budget of the shareholders. Once the growth starts, further steps can be taken accordingly.
- A legal identity that is completely separate – A private limited company legally is considered a completely separate identity. The count for the assets and liabilities of the business as well as that of the Directors is different. As the company separates management and ownership, the managers will be responsible for the overall success of the company.
- Lots of alternate ways for raising funds – A private limited company in India will be able to raise funds from various alternate sources. Some of the most popular sources include capitalists and angel investors.
- Easy transferring of shares – The shares of the company can be easily transferred from one shareholder to the other. From the filing to the signing of a share transfer with the help of a share certificate, every activity can be easily carried out.
- Zero interruption in terms of existence – With perpetual succession, the operations of a private limited company will hardly be affected by the death or departure of any member. The activities will continue irrespective of the change in the name of membership. This is one of the highly remarkable characteristics of such a company.
- Foreign Direct Investment permitted – In the case of a private limited company, Foreign Direct Investment is permitted. It means that any person belonging to an offshore country will be able to invest in the company.
- Easy building of credibility – As the particulars and necessary details of a private limited company are available in a public database, it will help in improving the credibility of the company. It makes it easy to authenticate the details of the company in the best possible manner.
Last but not the least, a private limited company comprises a limited amount of liability. It means, that if the company undergoes any type of financial distress due to any reason; still the personal assets will hardly be utilized for paying the debts of the company. This is because the liability of the person is available in a limited amount.
Why Choose MyRegistration for Enlisting Your Business?
Once you are done with coming across the lucrative benefits and details associated with a private limited company, you must be planning to enlist your business in the same manner. While carrying out your research, you will be swarmed by a wide number of sources that will help in this regard.
Opting for MyRegistration will let you ease in terms of legal compliance procedures. An integrated platform will let your business to adhere various types of forms to let in the smooth running of the same. We have gained a reputation for promoting the automated process for simplifying the complete registration process.
Setting up a business anywhere in India is not a small cup of tea. It requires a high investment and the completion of several formalities. Keeping these points in high consideration, we have come to provide you with the best service at an affordable price rate. Come, shake hands with us, and give a kick-start to your dream of setting up a business!