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All About Private Limited Company

Updated: Apr 18, 2023



Private Limited Company is one of the most famous business elements for organizations in India. A Private Limited Company is Company that is secretly held for independent ventures. A Pvt Ltd Company can be begun with at least two individuals and a limit of fifty individuals. It is a different lawful element and its chiefs have restricted responsibility. For a situation of default, banks/loan bosses can sell the organization's resources yet not the individual resources of Directors.

What are the Benefits of Pvt Ltd Company Registration in India

  • Limited Risk: The investors have limited Liability which implies that the investor will be at risk to pay for the organization's responsibility just to the degree of the commitment made by him/her.

  • Separate Legal Entity: Pvt Ltd Company is a Separate Legal Entity unmistakable from its individuals. The organization is answerable for the administration of its resources and liabilities, account holders, and leasers. Furthermore, you are not actually answerable for it. In this way, the loan bosses can't continue against you to recuperate the cash.

  • Trustworthiness: Companies in India are enrolled with the Registrar of Companies under the Companies Act 2013. This type of business structure is believed beyond different structures as anybody can actually look at the subtleties of the organization through the Service of Corporate Undertakings (MCA) and have some familiarity with it.

  • Perpetual Succession: The organization stays existing according to regulation even on account of death, indebtedness, and the liquidation of any of its individuals. The existence of an organization continues to exist everlastingly until it is lawfully broken down.

Is a Private Limited Company Better Than a Partnership Company?


You can pick both of the two business structures as per your necessities by checking out their upsides and downsides. Yet, a Pvt Ltd Company is in every case better and the most famous business structure. As it has a Limited Liability joined to it and goes about as a different legitimate element. The proprietor isn't actually obligated to any sort of responsibility. It makes a secret safeguarded wall between the organization and its proprietor and shields him from any sort of risk.


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What are the Characteristics of a Private Limited Company?


Characteristics of Pvt ltd Company Registered in India are-

  • Members- To begin an organization, a minimum number of 2 individuals are required and a Maximum number of 200 individuals can be there.

  • Limited liability- The investors have Limited Liability which implies that the investor will be responsible to pay for the company's Liability just to the degree of the commitment made by him.

  • Number of Directors- A minimum of 2 Directors are required for a Pvt Ltd Company Registration in India

  • Paid Up Capital- The minimum Paid up capital required for Pvt ltd Company is 1 lakh

  • Name- It is obligatory for every one of the privately owned businesses to utilize the word private Limited after their name.


What is to Be done when Closing or Winding Up the Pvt Ltd Company?


No matter how challenging it may be to close a Pvt Ltd Company, a loss-making business should either be rebuilt or shut down. Shutting it down lowers legitimate and consistent charges, leases, or other personal expenses in the event that rebuilding is not a good option. The risk of losing the contributed resources is reduced by closing a failing organization. By any stretch of the imagination, running a disastrous private corporation only for consistency reasons makes no sense.


One can easily close an organization using the Quick Track Leave Mode. The organization is deliberately brought to an end using the best possible attack strategy.


However, the dissolution of an organization is restricted by a court order, and disintegration is initiated by a court once the time period has passed or the organization's primary objective has been accomplished.


What are the process and Documents for the Closure of Pvt ltd Company?


Process of Closure of Pvt Ltd Company:

  • Review by business experts to find if the Private Company is eligible for an exit.

  • All requisite Fast Track Exit documents are prepared in 10-12 working days by our experts.

  • The e-form STK-2 will be filed with MCA

  • The Registrar will issue a public notice

  • The Registrar will strike off the name of the Company from the Register and shall publish it in Official Gazette.

Documents Required for Closure of Pvt Ltd Company

  • Statement of accounts reflecting zero assets and liability except for share capital and Profit and Loss Debit balance

  • Indemnity Bond

  • Affidavits

  • Copy of Board and Shareholders’ Resolution


Read out our other Blog Why a Private Limited Company is Prefered Over Other Companies? Also to know more about Pvt Ltd Company Registration and all




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