In India, most of the legally registered businesses are Private Limited Company. The reason may lie in its formation process. Private Limited Company enlistment measure is exceptionally straightforward in India.. This reason can be responsible that most of the Companies in India fall in this section
Anyone can start a Private Limited Company. If your business is small or medium and there are limited numbers of shareholders, you should start with the process of incorporating it as Private Limited Company.
Most of the startup organizations prefer to start as a Private Limited Company. It can get you the requisite growth and stability opportunity to carry one with your business.
Private Limited Companies get the opportunity to start it under Indian Government's scheme, Startup India. Under this scheme your company would be entitled with multiple benefits that Indian Government offers.
Distinct Legal Body
A Private Limited Company is a distinct legal body separate from its members and directors. It means that the assets and liabilities of the company are not equivalent to the assets and liabilities of the directors and members.
Minimum Obligation
If any Private Limited Company gets bankrupted or dissolved, then the owner does not bear all the losses. It is called. "Limited liability" or you can say least commitment. It implies that as an owner you will bear the loss limited to your investment or share in the Company. Your personal assets are not in risk at all.
Can goes on forever
A private Company is an autonomous and individual legal body than its members and directors. So, its existence is not subjected to the presence of its members and/or owner and/or the directors. Without them, the company can go on forever until it is legally dissolved or closed.
Requirements are Less to Incorporate
As compared with Public Limited Company registration, private limited company registration process comes with fewer requirements. You can start your Private Limited Company with the below mentioned criterion fulfillments.
No Minimum Capital Requirement
Previously, you needed to have just ¹100,000 capital to start your Private Limited Company. But, as per the latest amendments in 2013, this clause has been ticked out. Hence, there is no base capital requirement.
Simple to Transfer Shares
Transferring of shares is easy in Private Limited Company. As a shareholder of the company you can transfer your shares to any other member or any other individual. You just need to file the share transfer form and hand it to the buyer along with share certificate.
Eligible for FDI
A Private Limited Company can get FDI (Foreign Direct Investment) from any other foreign Company or individuals. There is a provision of 100% FDI for the Private Companies in India.
Possession of Property and Assets
As a separate legal entity, a Private Limited Company can possess any property and assets in its own name. In this case, the Company is the owner of the property. No member or shareholder can claim those properties as their own.
How to commence a Startup Business in India?Under the Startup India scheme, Government also provides some great benefits to the entrepreneurs. To avail those benefits, people need to start a business/company at first. Here are our recommendations to begin with a startup company in India.
Start with Market Research
The first step to start a business is to go with market research. With it, people can gather crucial information about the potential clients of their business, the demand for a particular product and services in a specific area or global market and many more. Market Research data can tell you how to turn your business idea into a successful venture.
Decide your business plan
As now you have got some crucial information with the market research, you can decide your business plan. Different kinds of amazing business ideas can be found on Make in India as well as MSME websites that are provided by the GOI.
Under the startup scheme people can start their business in the areas of agriculture, manufacturing, tourism, hospitality, finance, and even in aerospace and defense as well.
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