Hmmm…I want to start a business, raise funds from investors and expand operations all over. I want investors to own my company, but should not interfere in my day to day operations. At the same time, if something goes wrong, I want my liability to be limited. But, but. but,…. compliance requirements are relatively higher and so is the costing. Umm… I can take Moneyम्जी‘s help for that. Yes, I should start a private limited company.
If you are planning to raise funding, Moneyम्जी believes private limited company should be the preferred choice of business. It allows a significant degree of separation between operations and ownership. It gives investors a choice of exiting the company without any hassle by just selling the shares without being liable for company affairs.
It is a privately held business entity with limited liabilities.
Another fact that Moneyम्जी wants you to know is that if a business is planning to go global, then the Private Limited Company is the only form which allows 100% Foreign Direct Investment, without any prior government approval.
Private Limited Company should be the preferred choice of business if you are planning to raise funding. It is a privately held business entity with limited liabilities.
It allows a significant degree of separation between operations and ownership. It gives investors a choice of exiting the company without any hassle by just selling the shares without being liable for company affairs.
If a business is planning to go global, then the Private Limited Company is the only form which allows 100% Foreign Direct Investment, without any prior government approval.
WHY PRIVATE LIMITED COMPANY?
EASE OF FORMATION
A Private Limited Company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. With Spice forms, this is the fastest way to register a company
SEPARATE LEGAL ENTITY
The biggest advantage of a Private Limited Company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.
PERPETUAL SUCCESSION
In case of death of the owner or transfer of shares, your business won’t get affected. There will be no effect on firm’s continuance.
LIMITED LIABILITY
The greatest benefit of Private Limited Company is limited liability. If any liability arise then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Stakeholders are not liable for corporate debts and liabilities
GREATER FLEXIBILITY
A Private Limited Company is required to perform lesser legal formalities as compared to a Public Limited Company. It enjoys special exemptions and privileges under the company law. Therefore, in Private Limited Company, less number of compliance is required.
SECRECY
A Private Limited Company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.
INVESTMENT
Flexibility to raise investments or loans from NRIs and Foreigners. Easy to raise investments and corporate loans
TRANSPARENCY
Private Limited Company enjoys enhanced transparency thus able to win the trust of general public.
MINIMUM COMPLIANCE
Private Limited Company enjoys enhanced transparency thus able to win the trust of general public.
MOVING STEP BY STEP
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Time Period:
Within 7 days, if documents are ready!
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