One of the most advised strategies to launch a business in India is to establish a private limited company. This kind of business gives its stockholders limited liability along with some ownership constraints. An LLP has partners who are the company’s owners and managers. Directors may be distinct from shareholders in a private limited business, though.
Distinct legal status: A private limited corporation, other than its members and directors, has a distinct legal position. Even if the shareholders (members) contributed the funds and assets of the firm, the latter eventually became its property. With the firm, even the members may engage into a contract.
Continuous succession: The company’s existence never changes, even if members come and depart or pass away. This is so because the corporation was established by law and now has a different legal position than its founders. The firm keeps operating until it is wound up (on specific grounds specified by the act).
Modest liability: Members of a private limited corporation are only accountable for their contributions to paid-up share capital. However, based on the various types of corporations, the members’ obligation may also vary.
Transferable restricted shares: Even while a private limited company permits members to contribute the majority of the capital, it bans public transfer of its shares.
Common seal: A private limited corporation may engage into a contract with other persons or corporate entities even if it is an artificial legal person. Consequently, a common seal here serves as the company’s signature. A common seal is, however, not required for a private limited corporation.
Synthetic legal person: A business is a fictitious legal entity formed by the law and endowed with personal rights. As a result, a corporation can independently own real estate, open a bank account, obtain loans, amass debt, and enter into a variety of contracts.
Your dependable attorney, filing pool, offers an inexpensive private limited company registration service in India. Here you may find information on business registration. We handle all legal requirements and comply with them as set forth by the Ministry of Corporate Affairs.