Form SPICe+, which was recently introduced by MCA, can be used to form a private limited company by a prescribed limit of members. The form is a single web form and offers ten integrated services.
A minimum of two directors is required to incorporate a private company, and the maximum number of directors is limited to 200 under the Companies Act, 2013.
Benefits of Incorporating a Private Limited Company
- In organisations such as general partnerships, all partners are personally accountable for any debt incurred. If the partnership cannot repay its debts, the partners will be obliged to sell personal assets to do so. In a private limited corporation, on the other hand, only the money invested in the business can be lost; the directors’ and shareholders’ personal assets are always shielded from any business-related dangers.
You can choose from a variety of company name ideas in the Vakilsearch company name generator for your brand-new, unregistered business.
- Private limited companies are well-suited for equity financing. Furthermore, such entities have limited liability. In addition, private equity funds and venture capitalists are reluctant to invest in any other type of corporate structure. This aspect of private limited companies also allows businesses to hire elite personnel that they otherwise would not be capable of paying.
- Private limited corporations can be sold or transferred to another individual or company, either partially or entirely, without disrupting ongoing business operations.
- The Registrar of Companies has access to and makes available to the public a lot of information regarding a private limited company’s structure, operations, and finances. This knowledge eventually finds its way into the public domain. As a result, vendors, lenders, employees, and the general public can access all additional information about the firm, such as authorised capital, director names, registered office, and so on. This information establishes a private limited company’s credibility above other companies (such as partnerships and sole proprietorship) that are not required to provide it.
- An LLP has fewer borrowing choices than a private limited business. Bank loans are easier to obtain (in comparison to OPCs and LLPs), moreover, private limited businesses also have the option of issuing debentures and convertible debentures.
Minimum Number of Members Permissible in a Private Limited Company
- According to the Companies Act 2013, you can form a private limited company with as few as two members.
Maximum Number of Members Permissible in a Private Limited Company
- According to the Companies Act 2013, you can form a private limited company with as many as two hundred members.
Seek Corporate Law Advice From The Best
We propose that you seek the advice of competent lawyers, such as the specialists at Vakilsearch, to complete the task of incorporation with a suitable number of members in a timely and hassle-free manner.
Don’t waste anymore time, get in touch with our experts at Vakilsearch today!
Also Read:
- Online Registration Process PVT LTD Company
- Process of Incorporating a Private Limited Company
- Private Limited Company : Documents Required
