As foreign investors seek to enter the Indian market, setting up a subsidiary in the form of a private company is often the simplest and most preferred business structure. A private company is a company made up of a small group of people with a minimum of 2 and a maximum of 50 members. At least 2 (two) directors are required to set up a private limited company in India, of which at least 1 (one) director is an Indian resident.
The establishment of a private limited company registration in Chennai offers many benefits to foreign investors, especially medium and large enterprises. We have identified below some of the major pros and cons regarding setting up such a company in India for your consideration.
What is Private limited company?
With a limited company, the personal assets of the shareholder will protect if one goes under the company. The sole liability of the shareholder will limited to the money initially invested. The limited company has its own business structure. Private limited company registration in Egmore have more than one member who buys into the company through a private sale.
A director is an employee of a company that maintains day-to-day administrative functions without a shareholder. The financial owner of the company is completely different from his own assets. Their tax separately.
Company set up under Private limited company registration in T.Nagar will own all the profits and pay taxes, pay dividends to shareholders and use the rest for working capital.
The director can withdraw money for salary, dividend payment or just alone. All profits that a company makes can keep after paying taxes. All company finance must keep separate from any personal money to prevent any misunderstanding.
Private company limited by shares
Pursuant to Section 4 (2) of the Companies Act, 201, a company which is limited by shares refers to a company which is limited by the amount of liability of the members. The company can bring this responsibility when it exists or as it is coming to an end.
Limited by shares refers to the liability of shareholders to the creditors of the business of the original invested money.
Private limited company registration in Chennai done according to the Companies Act 2013, if the liability of the members. It is not limited by the amount paid on the shares, it is defined as a company limited by shares. The shareholder has to meet the debit of the company only to the extent that no payment is make on his shares and no separate assets can be used to settle the debt.
A company which is limit by shares will divide the share capital into a fixed amount of shares which can then issued to the shareholder.Then become the owners of the company. A company limited by shares can provide money using loans, equity and grants.
Types of Private Limited Company Registration
1.Company Limited by Guarantee: This Company has no shareholders. This includes members who contribute less to pay off any arrears if liquidation is possible.
2.Public Limited Company: This Company usually trades in public. Shareholders are responsible for their own individual investment value.
LTD is usually include for private and business ventures. It is limited by shares and is the liability of members limited by its own constitution. This type of company does not include a clause of purpose. This way, he can trade in any legal business that the shareholders deem appropriate.
A small company will have to file audit accounts as there is not enough information in the company registration fee. Annual returns are also require to pay every year, even if the company has never traded.
Advantages of private limited company
Simple and easy set up:
Foreign investors do not need any special approval from the Government of India to set up a private limited company registration in Guindy except that the area in which the foreign investor wants to invest is not part of the restricted list of India’s foreign direct investment policy. A private limited company can be 100% own by foreign shareholders. There is no minimum capital require to set up a private company in India and such a company can set up in a period of 2 weeks.
When register in private limited company registration in Sholinganallur the liability of each shareholder in a private limited company is limit to the number of shares by such a person in the company as the private limit company has a separate legal identity.Therefore, in case of outstanding debt against the company, the shareholder can be liable only for the amount invest by him / her in the company and his personal assets will remain untouch.
The establishment of a private limited company registration in Madurai is more tax advantage than other types of legal entities in India. Recently, various subsidies has introduce by the Government of India to reduce the corporate income tax paid by a private limited company in India. In general, the corporate income tax rate in India is 15% -30% depending on the turnover and business sector .
Adani Green Energy Ltd rose 0.34 per cent to Rs 1,026.35 in Tuesday’s trade. It was at Rs 1047.15 and lower at Rs 1006.55 during the session. On the technical charts, the stock had a 200-DMA of Rs 622.18 and a 50-DMA of Rs 1051.4. If a stock trades above 50-DMA and 200-DMA, On the other hand, if the stock trades below 50-DMA and 200-DMA. It is consider a bearish and if it trades between these averages, it indicates that the stock may move anywhere.