PRIVATE LIMITED COMPANY:
The Companies Act, 2013 was passed by the Parliament in August 2013, and the legislation passed has been amended the law relating to corporate affairs. A private limited company can have a minimum of two members and can go as far as two hundred members have limited liability of its members.
Private limited companies in India are governed by the Companies Act under the Ministry of Corporate Affairs (MCA). Every private limited company has to follow numbers of compliance as laid down by various statutes and other regulatory bodies. Following are the major benefits of incorporating the private limited company:
- Easy transferability of shares– Shares of a
company limited by shares are transferable by a shareholder to any other person.
The transfer is easy as compared to the transfer of an interest in a business.
- Eligible to
apply for Startup India and take benefits from the Startup India registration.
- Borrowing Capacity– A company enjoys better avenues for borrowing funds.
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