Private limited company
Advantages of Private limited company
An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Private Limited companies are not affected by the status of their owner when it comes to their existence. Changes within the management does not bring any affect to the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law. Death or inability to continue of owner does not hinder the proceedings of the company.
No Minimum paid-up capital:
The Companies Amendment Act, 2015 has come up with an amendment that there is no minimum capital requirement for starting a private limited company. The Companies amendment Act, 2013 has removed the words “of one lakh rupees or such higher paid-up share capital”. So the private limited company can be started without any amount of minimum capital.
The greatest benefit of private limited companies is its limited liability. The liability of the company is different as from its members of a company. Liability for debts incurred by the company lies in the company itself and not on the members. If anything happen to the company, its members are personally affected.
Minimum requirement of members and directors:
Only two members and two directors are required to incorporate a private limited company. This gives many Entrepreneurs an opportunity to set up their own company.