A private limited company, or LTD, is a type of privately held small business entity. This type of business entity limits owner liability to their shares limits the number of shareholders to 50 and restricts shareholders from publicly trading shares. To start a business, a minimum number of 2 members are instructed and a maximum number of 200 members as per the requirements of the Companies Act, 2013
1. Improves Credibility: Private Company improves credibility by being registered as a corporate entity.
2. Attract Funding: Syndicate both equity and debt funds to have an optimal capital structure
3. Foreign Investment: Businesses may attract foreign direct investment (FDI) under the automatic route.
4. Easy Exit Plan: It has an Exit plan through the sale or dilution of equity of the Company.
5. Limited Liability: It helps in protecting the personal assets of the owners with limited liability protection.
6. Easy Transferability: Ownership of a business can be easily transferred to a company by transferring shares.
If Property is taken on Rent, then rent agreement required. Agreement must be notarized.