Microfinance Company Registration – Benefits, Process, Documents

Overview of Private Limited Company Registration

A Private Limited Company is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs private limited company registration in India.

While, minimum 2 shareholders are required to start a private company, while the higher limit of members are 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

• A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business.
• Help owners from personal liability and protects from other risks and losses.
• Draws more customers
• Ease in obtaining bank credits
• Offers limited liability to preserve your company’s assets
• Greater funds supplement and more attractive stability
• Enhance the potential to grow big and expand

Starting a private limited company offers many advantages. Some of them are as follows:

Limited Liability

The responsibility of the members of a private limited company is restricted to their share only as the private limited company is a separate legal entity.

Separate Legal entity

A private limited company is a separate legal entity which posses all the rights to sue or to be sued. It acts an artificial person which can buy a property on its own name.