Private limited company is an independent legal entity with limited liability. Private limited company is a limited liability company formed with minimum two and maximum fifteen directors under Companies Act 2013 and it can have minimum two and maximum two hundred shareholders/members. In this form of company, directors have limited liability to shareholders, perpetual succession, easy to manage compliances, easy equity funding, and transferable ownership i.e. sale or purchase of company.
A Private Limited Company is the most opted form of business entity for foreign investors in India. In this form of business entity foreign nationals and foreign companies can become directors and/ or shareholder and can bring foreign direct investment in compliance with RBI guidelines.
Most ideal form of Company for Startups to start business and apply for funding from Investors. With Private Limited Company you can easily chase Bankers, financial Institutions and Private Equity Investors for expansion of your business.
Now a Private Limited Company can be incorporated with ZERO capital. Almost 90% of the companies incorporated in India are registered as private limited companies. LATERON, A private Limited Company can be easily converted into a Public Limited Company in case of expansion OR can be converted into Limited Liability Partnership to reduce burden of ROC compliances.