Private Limited Company

WHAT IS A PRIVATE LIMITED COMPANY?

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.

WHAT ARE THE ADVANTAGES OF SETTING UP A PRIVATE LIMITED COMPANY?

Some of the advantages of incorporating a Private Limited Company in India are mentioned herein:

1. There is a Limited Liability of the Designated Partners.


2. There are benefits of tax breaks.


3. Restricted Sale or Transfer of Shares in the company.


4. In a Private Limited Company there is a continued existence of the business as the members can change but the business will continue to remain.


5. It has a greater credibility than any other available company structure.


6. Private Limited Company can easily attract investors.


7. Private Limited Company can also easily get Bank Loans.

WHAT IS THE TIME TAKEN IN INCORPORATING A PRIVATE LIMITED COMPANY?

Incorporating a Private Ltd Company can take a maximum of 20-25 days

GET IT INCORPORATED: