PRIVATE LIMITED COMPANY

• Limited Liability

The Company exists as a separate legal entity as from its members. The liability of the company is different as from its members of a company. Liability for repayment of debts and lawsuits incurred by the Company, lies on it and not on the owner.

• Perpetual Succession

An incorporated company has perpetual succession. It means the company shall continue to exist even if the member dies or ceases, etc. Changes within the management does not bring any affect onto the identity of the entity, the entity will remain the same with same privileges, immunities, estates and possessions. The entity shall continue to exist till its wound up in accordance with the provisions of the relevant law.

• Easy Transferable Ownership

The shares and other interest of any member in the Company shall tend to be a movable property and can be transferable in the manner so provided by the Articles of such company. Therefore, it is easier to subscribe or leave the membership of the Company. Also it is easier to transfer the ownership.

• Separate Property

A Company as a legal entity is capable of owning its funds and other properties. The Company is the real person in whose hands all the property is vested and such company has the sole right to control, manage and dispose off the property so vested in the hands of the company. The property of Company is not the property of its shareholders.

• Taxation

As everyone wants to minimize his tax burden thus company as per the income tax act 1961 has another main benefit of incorporation towards taxation. Companies are often taxed at a lower rate and are provided with better taxable benefits as compared to other forms of business organization.

• Raising Money

Raising money as a small business and a sole proprietorship or partnership can be difficult. But as per Companies act 2013 a company can sell shares to public or can accept deposits from public and can therefore raise money easier than other business structure types. The modes of financing business carried on by company are numerous. Moreover, since the companies are governed by particular law and have to comply with stringent disclosure norms, therefore they enjoy good credit worthiness with various financial institutions

• Selling the Business

It is easy to sell business for a company than any other business form. As business Corporation value will be based on the business, not the owner, therefore making it easy to sell the Company.

• Capacity to sue

As a juristic legal person, a Company can sue in its name and be sued by others.

• Better Governed

Companies are governed by The Companies Act, 2013 and have to follow various other regulatory procedures during the course of its governance, moreover they have to comply with the stringent disclosure norms so imposed by the authority, which let to better governed organizations and creation of value for owners.

Company name is the one the most important factor, it is your first impression to your clients, suppliers, stakeholders etc.

Therefore it should be attractive, quirky & relevant. Few factors to be kept in mind:-

i. Meaningful:-

The name of company should be relevant to your business. It should fit the company’s branding.

ii. Unique:-

The name of the company should not be the same or identical to an existing company.

iii. Adding Suffix:-

The name of the company must end with suffix “Private Limited Company” in case of Private Limited Company
You need to provide with 2 names during the Name Approval Process under RUN, once you are done providing the company name, then MCA will check the same and approve it as per the name Availability Rules and Regulations.
If you want to register your own company then you can get in touch with us. We will help you with company formation procedure. All the company registration information will be given to you by our experts.