Pvt Ltd Company Registration In India |
Posted: July 19, 2018 |
India is a huge country with so many types of companies prevailing in it. But it becomes very difficult to find out which type of company should be owned and get the legalities done so that it will be benefited to one and all. So if you are also confused about which type of company will suit your company, then it's better to consult the company legal services provider and know what the details about it. There is many company legal services provider in our country but you have to be smart enough to find out the most effective and efficient services providers which can provide you the best assistance. These companies also guide you about the registration, so it's your job to find out the best and cheapest company registration in India and the get started with your company. One such type of company which maximum of the entrepreneurs opts for is the Pvt Ltd company registration in India. In this article, we will discuss in details about the Pvt Ltd company registration in India. We will try to explain the concept of private limited in India, by stating the reasons why this type of business is best. The following are reasons illustrated why Pvt Ltd company registration in India is chosen among numerous types of business prevailing in the country:- 1. It is dynamic 2. Less liability compared to another type of companies 3. Great stability 4. More capital contribution 5. Diversified opportunities to expand and grow wide. Benefits of Pvt Ltd company registration in India 1. Less Liability:- None of the business can be run without any funds, so money is often arranged by lending to through banks. In General Partnership, the partners are solely responsible for the paying the debt, and if by any chance the business cannot pay the debt then they have to sell their personal properties and repay the debt. But all this is not entertained or experienced in private limited company, as here, if the loan is taken, then it will be repaid only through selling the company and the personal asset of the owners or the loan takers will not be hampered. 2. One sole Legal Entity:- The private ltd company is the legal entity under the companies Act. So, any private ltd co can be legally authorized for opening any kind of business, hire employees, obtain the licenses and nutshell work as the independent corporate entity. 3. Easy investment:- The private ltd compiles can easily arrange the equity funding because there is a crystal clear between the directors and shareholders and also the limited liability is taken into consideration. In another form of business the private equity and the venture capitalists funds are not invested. This is the reason, why the LLPs are required to become the partners in the enterprise, whereas the OPC can only have one shareholder. This attribute is credible because the company can appoint more talented human resource in spite of not being able to afford to hire that person on the salary basis. 4. Easy access to debt:- Unlike the LLPS, the private ltd co has numerous options for taking debt, they can easily get the bank loans and even the issuing of the debentures and the convertible debentures are very easily available to them. 5. Capacity to borrow:- The private lets companies in India can easily raise the equity funds. With the prior permission from the RBI, the Pvt Ltd companies can issue the shares of debentures, equities, and preference. They can even accept the deposits these, if the RBI authorizes them to do so. Even the banks or the financial institution prefer to provide the funds to the established companies than to the proprietary firms and the partnership organizations. 6. Unbiased Existence:- The private Ltd Company can sustain and work until it is not legally dissolved or finished. This company is like a human being who has the legal right to live and work, irrespective of the fact that which member is leaving the job or joining the firm. Even if there is a change in the ownership then also the functioning of the company is not hampered. 7. Can be easily transferred:- The ownership can be easily transferred to someone else by just transferring the shares on his name. It is compulsory to transfer the shares to the new owner by signing, transferring and filing of the share transfer form and the share certificates as well. It is essential that all the other shareholders are in the favor of the transfer of the ownership. 8. Can own property:- The private ltd company is like an artificial person, who can own property in its name. The property which is owned by the company can be a land, building, assets, factory, machinery etc. None of the shareholders can claim any of the property of the firm as his until the company is running.
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