Company Registration

No minimum capital No minimum capital is mandatory in the formation of a private limited company. Some of the key amendments and clarification in the Companies Amendment Act 2015 are, no minimum paid up share capital(The minimum paid up capital of INR 100,000 in case of private company and INR 500,000 in case of public company has been abolished) Accordingly no minimum paid up capital requirement will now apply for incorporating private as well as public company . These changes are gonna provide a healthy business situation.

Special legal entity Since no minimum capital is required to form a Private Company therefore it can b e registered with less than Rs 10.000 as Authorization Share capital.

Limited Liability ‘Limited’ means to keep within a specific range and ‘Liability’ means responsibility towards someone, especially money owned. So in private company when the business experiences financial crises or closure, the financial liabilities of the director is limited to his shares . In this way they do not loose their personal asset to fulfill the depth of the company.

Attract Funding A private limited company attracts funding by various means for example by issuing the debentures, ventures capital, High net worth individuals, angel investors , by accepting deposits from the public and many more such things. Even banking and financial institute provide large financial assistance to the company.

FDI Allowed FDI stands for Foreign Direct Investment it is most common for foreign to start up in India. Business people are aiming to make there business international in order to get maximum profit and fame. With simplified process and submission of certain documents NRIs are finding very easy and convenient to start up business in India. Any investment above 10% is considere as FDI.

Reliability One of the facts why consumers trust the private company is because of its reliability. Registering for PCL(Private Limited Company) is easy and quick than any other form of company registration. All the information related to the companies are present with Registrar of the Companies . Thus this makes ut easier for the vendors to look to any company details which makes more credibility than its entities.