Companies Act 2013, provides for the registration of a Private Limited Company, which cannot raise funds from the Public and cannot issue company shares to the Public. However, private company is set up with a common objective of the people/directors of the company sharing the same goals.
Private Limited Company is also the most commonly used company set up used for incorporation by the new companies as the structure of the company is such that it can very easily attract funds from the venture capitalists and private equity holders. Private Limited Company can also easily attract bank loans because of its structure.
Some of the advantages of incorporating a Private Limited Company in India are mentioned herein:
Incorporating a Private Ltd Company can take a maximum of 20-25 days
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