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What is Private Limited Company registration?

Private Limited Company, is the best corporate structure to start your own business. It can be registered with minimum two members and maximum with two hundred members. The private limited company is juristic, and the liability of members is limited to their shares. The private limited company can be registered within 7-10 days. A private limited company must hold board meeting and file annual returns with MCA (Ministry of Corporate affairs). Private limited company has more credibility than an LLP or General Partnership. Venture capitalist and Angel investor prefers to invest in a private limited company. Approximate every year, more than 100,000 companies registered India.

 

Advantages of Private Limited Company Registration

Continuity of Existence

The life of a business is not affected by the status of shareholders and even after the death of the shareholder, the private limited company continues to exist.

Scope of Expansion

The Scope of expansion is higher because easy to raise capital from a venture capitalist, angel investor, financial institutions and the advantage of limited liability. The private limited offer more transparency in the company.

Brand Value

Liability of Members and Directors of the private limited company is limited to their shares. It means that if the company suffers from any loss and faces financial distress because of primary business activity, the personal assets of shareholders/Members/Directors will not be at risk of being seized by banks, creditors, and government.

Valuation and Customer

The valuation is an important aspect of the company and high valuation comes from loyal customers. You should work on a business model with a higher lifetime value of a customer; Entrepreneur should focus on higher assessment of the company by offering the unique value proposition to the customer’s life.

Limited Liability

Liability of Members and Directors of the private limited company is limited to their shares. It means that if the company suffers from any loss and faces financial distress because of primary business activity, the personal assets of shareholders/Members/Directors will not be at risk of being seized by banks, creditors, and government.