What is a Private Limited Company?
A Private Limited Company is a Company limited by shares in which there can be a maximum of 200 shareholders, no invitation can be made to the public for the subscription of shares or debentures, can not make or accept deposits from Public and there is a limitation on the transfer of shares. The liability of each shareholder is limited to the degree of the overdue quantity of the shares deal with value and the premium thereon in regard to the shares held by him. The liability of a Director/ Manager of such a Company can at times be unlimited. The minimum number of investors is 2. For Details see: Private Limited Company Registration in India. One of the best websites to get your Online Pvt. Ltd. Company Registered is Company Vakil.
What is a Public Limited Company?
A Public Limited Company is a Company limited by shares in which there is no restriction on the optimum number of investors, transfer of shares and approval of public deposits. The liability of a Director/ Manager of such a Company can at times be limitless.
What are the benefits of a Limited Company?
A minimal company has the following benefits:
Members’ (the directors and shareholders) financial liability is limited to the amount of cash they have paid for shares.
The management structure is clearly specified, which makes it easy to appoint, retire or eliminate directors.
If extra capital is required, it can be raised by selling more shares privately.
It is simple to admit more members.
The death, personal bankruptcy or withdrawal of capital by one member does not impact the company’s ability to trade.
The disposal of the entire or part of the business is quickly set up.
What are the drawbacks of a Limited Company?
A restricted company has the following drawbacks:
The requirement to sign up the company with the registrar of companies and supply yearly returns and examined statements of accounts. All details of the company are available for a public examination so there can be no secrecy. There are charges for failing to make returns.
It can be more expensive to set up. May require expert assistance to form.
As a director, you are dealt with as a staff member and need to pay tax.
The benefits of minimal liability status are increasingly being undermined by banks, finance house, landlords and suppliers who need personal assurances from the directors prior to they will operate
Company Vakil helps you in the online private limited Company Registration process, you just have to provide the required details as mentioned in the process on the website.
What entity is best matched?
The option of an entity depends on the circumstance of each case. Personal Limited Company has a lesser variety of compliance requirements. For that reason, typically where there is no requirement of raising of finances through a public problem and the ownership is planned to be carefully held by a limited variety of individuals, Private Limited Company is the finest option
What is the difference between authorized capital and paid-up capital?
The authorized capital is the capital limit licensed by the Registrar of Companies up to which the shares can be issued to the members/ public, as the case might be. The paid-up share capital is the paid portion of the capital subscribed by the investors
What is the treatment in acquiring a name approval for the proposed Company?
An application in Form No. 1A needs to be submitted with the Registrar of Companies (ROC) of the state in which the Registered Office of the proposed Company is to be positioned. (The name can be created names from the things of the proposed company or the names of the directors, etc. but should certainly be a sign of the primary things of the company. Names and addresses of the promoters (Minimum 7 for a public company while 2 for a personal company).3.
What is the minimum paid-up capital of a Private Limited Company?
The minimum paid-up capital at the time of incorporation of a private restricted company has to be Indian Rupees 1,00,000 (about United States Dollars 2,000). There is no ceiling on having the authorized capital and the paid-up capital. It can be increased any time, by payment of additional stamp duty and registration fee
A Private Limited Company is a Company restricted by shares in which there can be optimal 200 shareholders, no invite can be made to the public for membership of shares or debentures, can not make or accept deposits from Public and there is a limitation on the transfer of shares. A Public Limited Company is a Company limited by shares in which there is no limitation on the maximum number of shareholders, transfer of shares and acceptance of public deposits. An application in Form No. 1A requires to be submitted with the Registrar of Companies (ROC) of the state in which the Registered Office of the proposed Company is to be positioned. (The name can be coined names from the objects of the proposed company or the names of the directors, etc. but should absolutely be a sign of the primary object of the company. Type No. 29 – This is a consent acquired from all the proposed directors of the proposed company to act as directors of the proposed company.
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