All You Need to Know About Private Limited Companies
- Minimum 2 people can start a private limited company.
- In a private limited company, your shareholders cannot do business without the permission of your partner.
- It is a company that restricts the rights of its members to transfer its shares.
- Pvt Ltd company does not send invitations to the public to subscribe to its shares.
- It has the limited liability of shareholders.
- If a company suffers a loss under any circumstances, its shareholders are liable to sell their assets for payment.
- The minimum paid-up capital should be Rs 1 lakh or more.
complete information about a private limited company?
A private limited company is the simplest form of a business with its shareholders. There should be 2 directors and a maximum of 15 directors. Minimum 2 shareholders are required for a Private company registration a private limited company. It can have a maximum of 200 shareholders, not more than this.
Advantages of registering in a private limited company
limited exposure to limited personality– shareholders of a private limited company have limited liability, it means that a partner is responsible for the liability of his company you have the right to be paid only till the work done by you shareholders have the right to pay only till the work done by you, there is no personal liability so they don,t have to pay anything from their property. need to accounting assessment
legal rules-A plc is a legal entity that is different from us it means that the company is responsible for its property penalties
limited liability (range) –limited liability means the status of a company to be legally liable for a limited amount of debts. the work of a company is limited to the amount charged by them
owning property –the private limited company being an honest person can have rights on the property the company director cannot sue the company unless the company is a fraud or a running institution
Trading of shares – this is the biggest advantage for the shareholders that those who are shareholders, they say to send their shares they cannot exchange their shareholders. shareholders have to be canceled for the exchange of shares otherwise it does not come in a legal way. you can get a touch in the income tax return file
A disadvantage of a private limited company –one of the biggest disadvantages in a private limited company is that it restricts the ability of the owner of the shares to hold the shares as per the condition of their shares.
conclusion –private limited company is the best form for a small and medium-sized business which is professionally restricted to family in India more than 93% of the companies in India are private limited companies. the reason for such primitive numbers is the flexibility and freedom that comes with a private limited company.