Who should Register a Private Limited Company?
Before you start a business, there are a lot of things you have to pay most of your attention to and one of those things is the entity you choose for the company registration process in India.
The entity you select primarily depends on your business goals, business structures, and operations.
A private limited company, a type of privately held entity, is one of the most preferred and simplest forms of foreign company registration in India.
It can be registered with a minimum of two people and a maximum of 50 shareholders. One of the private limited directors has to be an Indian citizen and the other can be an NRI.
Now the question arises who should register a private limited company. The people who align with the following advantages are ascertained to open a private limited company:-
- Private limited companies are of great advantage for small businesses since there is no criterion of minimum capital to register for private entities. It can be registered with a mere sum of Rs. 10,000 as total Authorized Share capital.
- A private limited company benefits the directors in numerous ways. It has a separate legal entity. If there is any kind of loss in the company, the personal assets, and liability of members are left untouched to pay the debts and only the management is responsible for the success and the loss in the company. The liability of the person is limited and also restricted to them and not the company can take charge of it. Only the amount invested in starting the business would be sacrificed. For instance, a private limited company is subjected to pay a loan, they look for the business operations and they are unable to pay it now for some reasons so you are not responsible to pay any debt payable company no matter if the company remains under the debt, your personal assets are safe.
- Foreign Direct Investment is allowed in a private limited company which implies that any other foreign entity or foreigner can directly invest in your company.
- The information related to the company such as authorized capital, name of directors, employees is available in the public domain. All this data has access to different people which in turn adds to the credibility of the business.
- Private limited companies have easy access to the funds by venture capitalists and private equity funds. No other entity can raise funds except for the private limited company.
People who wish to enjoy all these benefits can register with a private limited company. It is always best to get the company registration done by legal experts. At DBPL, We help you open a company in India. We ensure that the registration process of your company in India is convenient while you pay attention to the other business operations and strategies for better results. Setting a company in India can be a draining and time-consuming process but you don’t have to worry, DBPL is always by your side to make everything easy for you with our expertise and experience.