INCORPORATION

WHAT IS A PRIVATE LIMITED COMPANY

A Private Limited Company is a business entity held by small group of people. It is registered for pre-defined objects and owned by a group of members called shareholders.

Minimum Requirement for Private Limited Company:

A minimum number of two Directorswho are adults.

One of the Directors of a private limited company has to be an Indian Citizenand Indian Resident.

The other director(s) can be a Foreign National.

It is also required to have two shareholdersof a company.

The shareholders can be natural persons or an artificial legal entity.

 

Advantages of Private Limited Company:

Here are some advantages to a Private Limited Company.

There is a Limited riskto personal assets in Private Limited Company.

Ltd. Co. is a Separate Legal Entity.

In the Private Limited Company there would Limited Liabilityfor members.

Shares of a company limited by shares are transferableby a shareholder to any other person. The transfer is easy as compared to the transfer of interest in business run as a proprietary concern or a partnership

Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entitycan sue and be sued in its own name.

A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved.

For a private company, the earlier minimum number of the share capital was Rs. 1,00,000, but now there is no such minimum capital compulsion. Therefore there is no pressure of fund requirements.

It is easy to fetch funding in a private limited company by transferring of shares.

WHAT IS A PARTNERSHIP FIRM

WHAT IS LIMITED LIABILITY PARTNERSHIP (LLP)

DIFFERENCE BETWEEN PARTNERSHIP FIRM & LLP

DIFFERENCE BETWEEN LLP & COMPANY