PRIVATE LIMITED COMPANY
A private limited company is governed by THE COMPANIES ACT , 2013. It is the most popular legal structure of business in India. It is necessary to register private limited company under the Ministry of Corporate Affairs. Here liability of members are limited unto their contribution towards share capital. Minimum 2 and maximum 200 members can associate with it. They will not be personally liable for company's borrowers or lenders. Any one director of company must be resident of India. Moreover as per general trend start ups should get it self registered under private Limited form only as due to this they get better response and private Limited is the 1st and basic choice for Invertors to invest in.
Key benefits of Private Limited Company:-
- Limited liability
- Mandatory compliances increases the trust of third party to do business.
- Stability and well defined rules and regulations
- Feasible for both small and large businesses
- Higher credibility in eye of government , lenders and others