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Private Limited Company Is Bound To Make An Impact In Your Business

A Private Limited Company is Privately Limited business organization. The ownership of the company is controlled and managed by one or several individuals and not by public. The main reason to register a private limited company is to reduce the financial responsibility of the people who own the business and beside of the obvious benefits of personal financial protection, limited company formation creates a professional corporate image and also allows business owners to manage their personal remuneration in a more tax-efficient manner.

private limited company

The ownership of the company is controlled and managed by one or several individuals and not by public. It develop the new business to reach the perfection on the top business financial market and corporate sector.

Every business must be established before commencing their everyday operations. This is very important for any businessman to satisfy all legal requirements as it helps the business to be launched successfully in the market. If you are an entrepreneur then you want to set- up your business, commence it smoothly and properly register it without any legal issues. It is important to use the correct procedure of private limited company registration.


7 Reasons to register a private limited company:- 

Team Building :-  Here offer stock ownership and ESOP plans to attract and retain talent.

Attratct Funding :- Syndicate both equity and debt funds to have an optimal capital structure.

Limited Liability:- protect personal assets of the promoters with limited liability protection.

Improve Credibility:- Improve credibility by being registered as a corporate entity.

Separate Legal Entity:- Establish separate legal identities and pursur multiple opportunities.

Have an Exit Plan:- Have an exit plan through sale or dilution of equity of the company.

Foreign Investment:- Accept foreign direct investment (FDI) under the automatic route.



Private Limited Company Characteristics:-

The major features of such companies are as follows.


  •  It can be formed by two members but the number of member limit shall not exceed 50.
  • It can begin business after registration without requiring any certificate.
  • Statuary meeting is not required as well as not to submit statuary report.
  • The number of director at least should be two in numbers. However the maximum numbers of directors are mentioned in the Articles of Association.
  • Without any prior approval of the government, directors of a company can easily receive loan.
  • It is necessary that there should be at least two members in a meeting to make a quorum.
  • The payments are made to the directors and the management staff are required no restrictions.
  • The financial report i.e. balance sheet and profit and loss were not require to send the copies account to the registrar.
  • The word (Private) limited is compulsory to use as the last word of the name.
  • It cannot be listed on stock exchange of the country.
 
 

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