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Advantages of a Private Limited Company

A Private Limited Company is the most common and important forms of Business Organization, Private Limited Companies offer the following advantages
Separate Legal Entity

A Private Limited Company is a legal entity and established under the Companies Act. Therefore a Private Limited company form of organization has wide legal capacity. The members i.e. Shareholders/Directors of a Private Limited Company have no liability to the creditors of a company for such debts. Hence, a Private Limited Company is a legal entity separate from that of its members.

Perpetual Succession
A Private Limited company has ‘perpetual succession’, that means it has continued or uninterrupted existence until it is legally dissolved. A Private Limited Company, being a separate legal person, is unaffected by the death any member / Director and continues to be in existence irrespective of the changes in membership and Directorship. Perpetual succession is one of the most important characteristics of a company.
Limited Liability
Limited Liability means being legally responsible only upto a limited amount for debts of a company. Unlike proprietorships and partnerships and any other unregistered forms of business, there is limited liability of the members in respect of the company’s debts. In other words, the liability of the members of a company is limited only to the extent of the face value of shares taken up by them.
Owning Property
A company being Separate Legal entity established under law can acquire, own, enjoy and alienate, property in its own name. No shareholder and Director can make any claim upon the property of the company so long as the company is a going concern.
Capacity to sue and be sued
A company being Separate Legal entity established under law can bring a legal action in own name against another person’s name, a company being an independent legal entity can sue and also be sued in its own name.
Borrowing Capacity
A company being Separate Legal entity established under law a company can borrow funds in its own name. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.

LET'S CLEAR ALL THE DOUBTS!
on Private Limited Company Registration

Below mentioned are the pre-requisites to register an Private Limited Company in India:
1. At least Two Director and Shareholders are required for Private limited Registration
2. At least Minimum one Director / Shareholder of two shall be an Indian resident
3. A Place where business needs to be registered must be provided as the registered office address of Private Limited.

No. There is no requirement to provide for minimum paid-up capital in Private Limited registration.

Authorized capital means the maximum amount of capital that a company can raise from its Shareholders by way of issuing shares in present or in the future. Paid-up Capital means the actual amount raised by the company and amount paid by shareholders upon issuance of shares. Paid-up capital can be less than authorized capital but it cannot exceeding from Authorised Capital.

Yes, Your company can be registered at a commercial or a residential place by Providing necessary proof like Electricity Bill / GAS Bill / Telephone Bill.

A Registered office is a place where communication, if any, from Government Department and other concerned authorities, Can be received. The Register Office Address is also displayed at the portal of Ministry of Corporate Affairs.

Photograph, PAN, Aadhar Card, Bank Statement, Electricity Bill for Register Office Proof 

Once, the Private Limited Company is registered, it must fulfill following requirements on priority:

  • Opening a Bank account of the company
  • Appoint the Statutory auditor
  • Deposit paid-up capital mentioned while making registration application
  • Issuance and allotment of shares and Form Filing for Commencement of Business
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