Private Limited Company

The minimum number of members required for starting the private limited company is two and atleast 2 director is appointed . Both Directors and Shareholders may or may not be the same person. It is considered as a legal person and can enjoy all the rights followed by certain duties which are needed to be abided.

The title of “private Limited Company” frames the good image in the mind of people and builds trust among all stakeholders and customers. Private limited company act as Goodwill for the business as company law prescribes many mandatory filings which these companies have to follow and this makes more clarity and transparency in business and company basic information remains in public domain. “Start-ups and growing companies” prefer the tag of a “Private limited company”. As a brand is most preferred by the people in the same way the company with the title of “Private Limited” is most trusted among the people.

Advantages to own Private Limited Company

1. Separate Legal Entity– Company is an artificial person having personality of its own which is distinct from the member or person constituting it and also having the feature of limited liability if company is limited by shares.
2. Credibility – A Private Limited Company also commands better credibility when compared with an LLP or a proprietorship firm. From corporate customers to the government, a private limited company will also have a upper hand in securing the business.
3. Limited Liability – The liability of the shareholders of a Private Limited Company is restricted to the capital invested in the company, hence limiting the risk to the business Investment and preventing personal assets from the risk of attachment.
4. Easy Funding – A Private Limited Company is the most preferred entity type for investors. Registering a private limited company will give you an opportunity to raise funds via bank loans, Angel Investors, Venture Capitalists, etc.; and various other legal rights.