Private limited company registration in India is the most ordinary way to incorporate a legal corporate entity in India as it is held by small group of people. Private Limited Company Registration in India requires Minimum 2 persons which can be both either Director or shareholder. Being a perpetual person, they own a great brand value, perpetual person means people may come and people may go but company will stay forever.
In India, there are a lot of Partnership firms but they had a major drawback that if one of a partner engages himself in any scrupulous activity and incurs losses, all the partners are legally liable to compensate for losses. Whereas in case of Private limited company, unlike partnership firms’ shareholders’ property can’t be attached for director’s scrupulous activities. All losses have to bear by company itself and in case company does not have sufficient funds, the company will have to liquidate but shareholders don’t have to give a penny other than uncalled amount of their shares subscribed; which has made Private Limited Company Registration in India more popular over other constitutions.
Advantages of Private Limited Company Registration In India
- Easy and Hassle-Free Transfer of Ownership
- Limited Liability of Shareholders
- Esteemed Brand Value
- Preferred choice of entity for Indian as well as Foreign Promoters/Investors.
- Protected Business Name
- Easy ways to raise funds
