A Private Limited Company is a form of company which gets registered as per the provision of the Companies Act, 2013. A private limited company registration in Delhi is easy and hassle-free. A Private Limited Company is one of the best options to jump start your operations in Delhi or any other states in India. Earlier, minimum paid-up capital of Rs. 1 Lakh was required for the formation of a Private Limited Company. But after the 2015 amendment to the Companies Act, 2013, no such minimum paid-up capital is required to form a Private Limited Company. Compliance requirement for a private limited company becomes mandatory not only before the incorporation, but also afterwards. It is the most preferable form of company amongst entrepreneurs.
A Private Limited Company is known for scalability and flexibility for conducting the business. In Delhi, private limited companies are the most acceptable form of business. You may choose to have ownership and management separate by hiring skilled professionals for growth of the business. You can manage your business through the constitution of the company, i.e. Articles of Association of the company.
- Limited Liability
There is no personal liability on a member for the debt and liabilities of the company. The liability is only limited to the share subscribed by the member at the time of winding up of the company.
- Separate Legal entity
A private limited company is an artificial separate legal entity. A private limited company can acquire, hold, and alienate property in its own name. Also, a private limited company can sue and can be sued in its own name. Moreover, it can enter into a contract in its own name through its members.
- Conducts business through natural person
A private limited company conducts its business through a natural person. All the affairs, whether financial or commercial, of a company private limited company are managed by its Directors, Top-level managers, Managing Directors and the employees of the company, etc.
- Perpetual Succession
In case the members of a private limited company die, then it does not come to an end or becomes insolvent. The company continues to operate unless dissolved by legally or voluntarily.
- Obtaining fund
A PLC can obtain funds by issuing shares, debentures, stock. A company can issue secured as well as unsecured debentures. It can also accept deposits from public. It is easier to get loans from financial institutions.
- Loan to Directors
Now a private limited company can advance loan or security/guarantee to its Directors provided that;
- Such company should not have body corporate as shareholder and;
- It should not have borrowed money from any financial institution or bank or any other body corporate, exceeding twice its paid up capital or 50 cr whichever is less and;
- No repayment default by such Company.
- Conversion of an LLP into PLC
If you are planning for long run business and want to build up huge capital resource, want to conduct business at large-scale, in such case, a small enterprise, an LLP can be easily converted into a PLC. A PLC can also be converted into a Public Limited Company as well and vice versa.
- Transfer of share
Shareholders are the owners of the company. A shareholder can transfer its share subject to the alteration in AOA.