Before starting a business, many thoughts go through our mind, and one question that everyone has is whether to incorporate a private limited company or not. What are the advantages of forming a private limited company in Bangalore ? Are there any disadvantages to forming a private limited company?
A Private Limited Company is legally created with Limited Liability or Legal Protection for its stockholders and it has limited ownership.
A Private Limited Firm is a privately held company for small enterprises or business. The members of a Private Limited Company are only liable for the number of shares that they own. Shares of Private Limited Company cannot be publicly traded.
Private Limited Company is the simplest and a very popular form of Business Registration in India. It requires a minimum of two individuals to register the company. It is the most recommended kind of business structure for millions of small and medium-sized enterprises that are family owned or professionally managed business due to its limited liability protection for shareholders, capacity to acquire equity money, and separate legal entity status
1. A minimum number of two Directors who are adults.
2. One of the Directors of a Private Limited Company has to be an Indian Citizen and Indian Resident
3. The other Director(s) can be a Foreign National.
4. It is also required to have two Shareholders of a company.
5. The Shareholders can be natural persons or an artificial legal entity.
In this Guide we explain about the Advantages of the Private Limited Company in India. Private Limited Company is one of the Most popular legal entity & which is adopted by the Start-ups
1. There is a Limited risk to personal assets in Private Limited Company.
2. In the Private Limited Company there would Limited Liability for members
3. shares are transferable: The shares and other interest of any member in the Company shall tend to be a movable property and can be transferable in the manner so provided by the Articles of such company. Therefore, it is easier to subscribe or leave the membership of the Company. Also, it is easier to transfer the ownership.
4. Pvt. Ltd. Co. is a Separate Legal Entity
5. Foreign Direct Investment: Every business requires funds for its survival and growth. Therefore, It is easier to take investment through a Private limited Company.
6. Being a separate legal entity, a private limited company can file a suit against the third party in its own name and the third party may also file suit against it.
7. For a private company, the earlier minimum number of the share capital was Rs. 1,00,000, but now there is no such minimum capital compulsion. Therefore, there is no pressure of fund requirements.
8. Fund Raising: A Private Limited Company in India is the only form of business except Public Limited Companies that can raise funds from the Venture Capitalists or Angel investors.
Power Of Factorial is a leading Auditors & Tax Consultants firm in Bangalore, led by skilled and experienced Auditor Mr. Bhartah. The firm has strived with the mission to provide a comprehensive range of financial and consulting services to its clients in Bangalore & Kr Puram. We offer a wide spectrum of services that includes Free GST Registration services in Bangalore, GST Consultant, Income Tax Consultant, GST Reconciliation, GST Filing, GST Registration, Online GST Registration, MSME Registration, Professional Tax services agency, Company Registration services, Income Tax service, ESI Registration in Bangalore, Partnership Firm Registration in Bangalore, Partnership company Registration, PF Registration, FSSAI Registration, Shop and Establishment Registration, Income Tax return.