Private Limited Company provides with the benefits like the ease in limited liability protection for owners & ownership transfer. This can be defined as a legal entity that is separate from its owners and stakeholders. Here the ownership is divided into shares, and shareholders are not personally liable for the company’s debts beyond their share capital contributions. When you register pvt ltd company, the ownership is usually divided into shares, and shareholders are not liable for the company’s debts beyond their share capital contributions. Some of the benefits of a private limited company are as follows.
Minimum Requirement for Private Limited Company
· The minimum requirements for private limited companies are as follows:
· You should atleast have a minimum share capital of one lakh rupees.
· A minimum of two directors is mandatory. They both need to be adults.
· One of them should be an Indian citizen.
· Two shareholders are required.
In this case, a minimum of two and maximum of 200 members are entitled in a private limited company.
The conveniences of private limited companies offer several, including:
No minimum paid-up capital: Research states that many countries do not impose a minimum paid-up capital requirement for private limited companies. This is easier for startups and small businesses.
No Minimum Paid-up Capital:
A pvt limited company registration has its own defined set of legal identities, distinct from its shareholders. This separation protects shareholders’ assets in case of business liabilities.
Fundraising:
Private limited companies can raise or augment their capital by issuing shares to investors, making it easier to attract investments and grow the business.
Credibility:
Usually a private limited company helps in improving the credibility and trust in the eyes of customers, suppliers, etc.
Last but not the least
The above facts have given you a brief insight into the benefits of a private limited company. In such organizations, shareholders play an essential role in the outstanding balance on their shares, thereby securing their own assets.