A Private Limited Company is a popular form of business structure in India. It is governed by the Companies Act, 2013, and is regulated by the Ministry of Corporate Affairs (MCA). Private Limited Companies are considered separate legal entities, and their liability is limited to the extent of their share capital. Here is an overview of the registration process:
1.Limited Liability: Shareholders' liability is limited to the extent of their shareholding, protecting their personal assets in case of company debts or liabilities.
2.Separate Legal Entity: A Pvt Ltd Company is treated as a distinct legal entity, which means it can own property, enter contracts, and sue or be sued in its own name.
3.Fundraising: It is easier to attract investors and raise capital through the sale of shares.
4.Perpetual Existence: A Pvt Ltd Company has perpetual succession, meaning it continues to exist even if shareholders change or pass away.
5.Credibility and Trust: Pvt Ltd Companies often gain more trust and credibility among customers, suppliers, and partners.
A Pvt Ltd Company is suitable for businesses that: