All the transactions related to shares of a Private Limited Company are done only by the company members. The public at large does not have any access to the shares of a private limited company. It needs at least 2 members and at most 50 members to get operated.
Why Private Limited Company Registration?
1. No Personal Liability
Unlike partnership companies, shareholders of private limited companies are not liable to sell personal assets in case of unforeseen financial disturbances. The directors may only lose the amount invested by them while starting the business.
2. Highly Qualified Employees
Those private limited companies who cannot think about hiring high salaried employees can easily offer shares and buy their services. It has become possible as there exists no confusion between shareholders and directors regarding their liability.
3. Easy Access To Funds
A Private Limited Company can collect sufficient funds from banks and other financial institutions.
Apart from these, the issue of debentures is another welcoming method to raise required funds by Private Limited Companies. These facilities are not easily accessible by limited Liability partnerships.
4. Hassle-Free Operations
Any other entity or businessman takes over full or a part of Private Limited Company following a hassle-free method.
The operations of the current business of that private limited company never get negatively affected due to such transfer.
5. High Credibility
A private limited company always keeps itself transparent to the general public in the following corners:
- Registered office
- Authorized capital
- Director’s name
It has become possible due to easy access to this information by the registrar of companies. It is how the credibility of the private limited companies gets in shape.
6. Foreign Direct Investment
A private limited company in India does not need any permission from the government for foreign investments in it. So they can feasibly expand their business globally that an LLP can never do without Government approval.
7. Welcoming Opportunities
To expand in every vertical of business, open doors of useful opportunities are very much needed. This facility of welcoming new opportunities is available at private limited companies. Because they are not limited to the promoter, unlike a partnership or sole proprietorship companies.
8. Value Maintenance
A private limited company always tries to maintain business value. Disclosure of norms, compliance with legalities, and strict rules are the best part of registering as a Private limited company in Mumbai.
MyTaxAdvisor can provide you all the best advice regarding the company suitable for you to start and professionally handle the registration process.