Private Limited Company in India
Private Limited Company is one of the most desirous forms of the business entity. In order to incorporate a private limited company there is minimum requirement of two shareholders and the maximum number of shareholders can be 200. There is minimum requirement of two directors and maximum number of director could be 15. Director should not be younger that eighteen years and should be natural person. Foreign nationals can be also be directors in private limited company. A private limited company provides limited liability to its members.
Private Limited Company has following features/benefits:
a. Separate Legal Entity:- A private limited company has separate legal entity and it has different identity from its members.
b. Uninterrupted Existence:- Life of company is not dependent upon life of members and directors. A private limited company continues to exist until it has been dissolved.
c. Limited Liability:- A private limited company provides limited liability to members and restrict their liability only up to the amount of shares subscribed by them.
d. Easy transferability of shares:- Shares of a private limited company is easily transferable from one member to another member.
e. Owning Property:- A private limited company can own property on his own name.
f. Capacity to sue and to be sued:- A private limited company can do legal proceedings against any persona or body and any person or body can also do legal proceeding against the company.
g. Borrowing Capacity:- A private limited company ahs better borrowing capacity and it can can have more privileged ways to raise the funds. Funds can be raised in the form of debentures, secured and unsecured loans from banks.