In India, most entrepreneurs have a fascination for a private limited company. Thus there is no dearth of the same and statistics prove that 93% of all companies registered in India are private limited companies. Start-ups, growing businesses, budding entrepreneurs etc., prefer to opt for private limited company registration in delhi because of the advantages associated with the same as:
Limited risks to personal assets: The biggest advantage of a private limited company is that in the unfortunate instance of a loss, only the investment associated with the company has to be forgone. No personal assets are confiscated and hence they are largely left untouched.
Legal entity of its own: A private limited company is considered to be a legal entity of its own. Thus it possesses the right to sue other company or people and can also get sued in return. In fact, it is treated as a separate entity and also has its own PAN number and tax returns too have to be filed for the same.
Brand value: Opening up a company and getting it registered either online or by availing the services of a company registration consultant in delhi tends to increase its brand value automatically. This is because every private limited company has to be registered with the MCA. Thus information regarding the private limited company can be obtained from the website of the MCA or Ministry of Corporate Affairs. As a direct consequence of this registration, vendors, banks, suppliers and even the general public tends to trust a private limited company over a proprietorship or a partnership firm.
Easy to expand: After the start-up, most companies expand beyond the scope of a start-up and become relatively bigger businesses. In order to facilitate this expansion, there is a need for an increase in the working capital which can be easily obtained from banks, venture capitalists etc. It is because of the organized structure of a private limited company as well as its compliance with the statutory rules and regulations that banking and non-banking finance institutions provide funding for their expansion quite easily. Thus it has been statistically seen that most companies which obtain a private limited company registration in delhi tend to expand and grow faster than the other types of companies.
Continuous existence: A private limited company is treated as a separate entity. Hence its existence is separate from that of its owners. Thus it continues to stay in existence even when its owners, directors and other members cease to exist in the near future.
Ownership transfer: There are no hassles involved in either incorporating new members to the board of the private limited company or to transfer the present ownership of directorship or shareholdings to other people. This makes a private limited company much more flexible than other companies.
These advantages make it an excellent option for early-stage entrepreneurs and growing businesses. Hence it is best to get the company registered either by taking the help of a company registration consultant in delhi or by opting for an online registration process.
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Ankur Sharma Joined: December 23rd, 2019 Articles Posted: 3
