Reasons to register a Private Limited Company

Private Limited Company is the most favoured type of company registered by a huge number of  people in India. Due to the adaptability in basic decision making, simple access to the banks for funds and approach towards financial investors to raise assets funds without any confinements, made Private Limited Company an ideal structure of  business  in India.

Characteristics of a private limited company

Members

In a private limited company there should be at least 2 members.  A maximum of  200 members can be allowed according to the provisions of the Companies Act,2013.

The risk of every partner or member is limited. In case of any financial crisis, its investors are at risk to move their own benefits for the debt. The individual resources of the investors are not in danger.

Perpetual succession

The company continues existing according to law even on account of death, indebtedness, the liquidation of any of its individuals. This prompts ceaseless progression of the company. The life of the company continues existing until the end of time.

Index of members

A private limited company  has a benefit over the public company  as they don’t need to keep a list of its members while people in a public company is required to keep up a record of its members or shareholders.

A number of directors

A private limited company should have at least two directors to operate till its entire life time.

Paid up capital

A private limited company should have at least one lakh rupees as the paid-up capital or a similar amount which can be notified at regular time intervals.

Prospectus

Prospectus is a comprehensive record of the operations of the company which is issued by a company for its customers. Notwithstanding, on account of private limited company, there is no such need to issue a plan in light of the fact that in this open isn’t welcome to buy in for the offers of the company.

Minimum subscription

It is the sum obtained by the company which is 90% of the shares issued inside a specific time frame. In case the company can’t get 90% of the sum, they can’t begin further business. In this case, there should arise an occurrence of private limited company shares can be dispensed to general society without getting the base membership.

Name

Every private company should use the word private limited company in its name according to the provisions of the Companies Act.

Advantages of a private limited company

Ownership

It is the sum obtained by the company which is 90% of the shares issued inside a specific time frame. In case the company can’t get 90% of the sum, they can’t begin further business. In this case, there should arise an occurrence of private limited company shares can be dispensed to general society without getting the base membership.

Focus of management

Managers of Public Company are centered around expanding the estimation of offers, while administrators of the private limited company are progressively adaptable for the time being and long run business choices.

Stock market pressure

Private limited company are not pressurized by money markets and you don’t need to stress over investor desires and obstruction as long as they work inside the law. Investors out in the open organizations are centered around current income and they apply weight on the company to build profit.

Confidential

It is clearly not fitting, for competitors to think about your business insider facts. Classified data, for example, official remuneration, legitimate settlements, and other basic data can’t be kept saved out in the public companies. Such data is increasingly secure in a private limited company.

Documents required for a private limited company registration

•  PAN card copy has to be submitted during the registration time. The name in the PAN card shall be used for all office works.
• Address proof copy with name same as that of in the PAN card.
• Any one of the utility bills along with the address in it.
• Identity and address proofs of the shareholders should be submitted during the registration.
• The company’s registered address of the office should be valid. All proofs shall be submitted not less than 30 days after company registration.
• Rental agreement copy or No Objection certificate from the landlord has to be submitted if the office is a rented one.

Solubilis, being one of the leading company registration consultants in Cochin can help you in registering your company.

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