Private Limited Company Registration is a popular choice to start a business in India through startups and businesses with high growth aspirations. The private limited company was incorporate under the Companies Act 2013 and is manage by the Ministry of Corporate Affairs (MCA). Private limited Company registration in Chennai- T.Nagar is a registered corporate entity that provides unique legal recognition to the business from its owners. Therefore, it provides important advantages such as the ability to contract under its own name and protect the personal assets of the owners from business liability.
Terms used in private limited company
Company – a taxable and separately calculated business entity. Furthermore, the community of people creates an organization. Also, a company can participate in a business, commercial or industrial organization.
Limited – The responsibility of the members of the organization is not unlimited. To better understand this, think of a sole proprietor (SP). In an SP, the owner is responsible for all the debts of the business. This is unlimited responsibility. However, in a private limited company, the liability is ‘limit’.
Private – Section 2 (68) of the Companies Act, 2013 describes about the private company. According to this section, articles of association may restrict the free transfer of shares and do not allow individuals to be given membership. Furthermore, there are also restrictions on the number of members. You can subscribe to a private limited company incorporation in chennai with at least two directors and two shareholders for the company’s paid-up capital. There is no minimum limit for paid-up capital. Therefore, the promoters of the company can determine the amount of paid up capital.
Private Limited Company Registration can be define as a company incorporated as a private company under Section 2 (68) of the Companies Act, 2013. A private company has a maximum of 200 members.
It is require to add the term “Private Limited” or “Private Limited”. At the end of its name. A private company requires at least two members and two directors.
The private company has the right to issue debentures to any of the individuals. Private limited company registration in Chennai –T.Nagar is limited to the transfer of its shares, but if any member of the private company wishes to transfer his shares under the pre-option provision, such shares may first be offer to an existing company member, unless such shares are provide in the articles unless the current members are willing to take the shares. The price of such shares shall be determine by the Director of the Company and in accordance with the pricing principle given in the articles.
Both Private Limited Company registration and LLP are limit liability structures. However, companies offer some important benefits, especially for startups. The ownership of the company is define by the share capital, which is easier to transfer compare to the ownership transfer in an LLP. Also, it clearly separates management and ownership. Therefore, VCs, angel investors and banks prefer to provide loan or equity funds.
Recent news private limited company registration
Under the latest scheme unveiled for central government employees, private sector employees who spend their holiday travel allowance on the purchase of consumer goods are eligible for tax exemption.
Finance Secretary Ajay Bhushan Pandey said private sector companies offering the benefit of the new LTC cash voucher scheme to their employees would not have to bear the additional consent burden.
Private limited company registration in Chennai,T.Nagar is required by law to maintain travel records and other documents submit by employees in order to obtain LTC. Under the new scheme, employees representing 3 times the cost of LTC will have to submit to their companies’ bills. Existing companies maintain records and submit them to the Income Tax Department only if requested.
A company owns property in its own name can earn and take away. No member of an organization can claim the property of the organization as its own. A firm is a legal person and its true owner. No shareholder is a member of the organization.
Claiming and suing
An organization has the same authority over any claim in a court of law as a person has in its name. In addition, a company can sue any other legal entity in court.
It is possible to enter into an agreement with any of its members in a private limited company. Therefore, an individual acquires a dual relationship with a company as an employee or shareholder, lender and director.
Ability to borrow
A company can issue debentures and also accept deposits. It can easily take large funds from banking and financial institutions.
Business start-up certification is not require
Once a private limited company registration in Chennai -T.Nagar is done, it immediately resumes its business operations. Initial certificate is not required to be obtain from the concern authorities. However, public limited companies must obtain a Certificate of Business Opening from the Registrar of Joint Stock Companies. Until this certificate is receive, a public company will not be commence with its business activities, even if it is properly incorporate
Less complex share allocation
A private limited company incorporation in Chennai establishes its capital from its members through a private arrangement. The general public is not involve, so share allocation is easier and less complicate in the case of private companies. In the case of public companies, as the shares are to be allot to the general public, much consent is require, such as the prospectus issue. In the case of public institutions, the general public as investors is in a more critical situation as the government tends to safeguard the interest of investors.
No legal meeting or legal report is require
In a private company, the general public does not give any investment. For this reason, in the case of public companies, it is mandatory, while exempting private companies from holding a legal meeting. Private limited company registration does not require to do so while government agencies are also require to file a legal report.