Private Limited Company
The most popular legal structure for startups and businesses with multiple owners.
Key Benefits
What is Private Limited Company?
A Private Limited Company is a privately held small business entity that is one of the most highly recommended ways to start a business in India. It is governed by the Companies Act, 2013 and offers limited liability to its shareholders with certain restrictions on ownership. The liability of the members is limited to the amount of shares held by them.
Characteristics
- Minimum 2 and Maximum 200 members.
- Minimum 2 directors required.
- Restricts the right to transfer its shares.
- Prohibits any invitation to the public to subscribe for any securities.
- Separate Legal Entity: The company is a distinct legal person from its members.
Regulations & Rules
- Section 2(68) of the Companies Act, 2013
- Companies (Incorporation) Rules, 2014
- Ministry of Corporate Affairs (MCA) guidelines
Advantages
- Limited Liability: Personal assets are protected from business debts.
- Perpetual Succession: The existence of the company is not affected by death or exit of members.
- Borrowing Capacity: Easier to raise funds from banks and venture capitalists.
- Tax Benefits: Various tax exemptions and lower corporate tax rates in certain cases.
Our Role
At Sunil K Sharma & Associates, we provide specialized Private Limited Company services tailored to the unique needs of your business. Our expertise ensures that you navigate the complex regulatory environment with ease and confidence. We handle everything from documentation to final approval, allowing you to focus on your core business.