A private limited company is a type of business entity in India that is widely preferred by foreign investors. It is a popular choice for starting a business in India due to the advantages of a private limited company offers, such as limited liability, ease of formation, and greater flexibility in management.
Kanoons can help you with the incorporation of your private limited company in India. We can assist you with the entire process, from filing the necessary documents to obtaining the approvals from the authorities. We can also help you with the post-incorporation formalities, such as opening a bank account and getting the required licenses.
The main advantages of setting up a private limited company in India are:
- Limited liability: This is one of the biggest advantages of a private limited company. The liability of the shareholders is limited to their investment in the company. This means that if the company goes bankrupt, the shareholders will not be held personally liable for the debts of the company.
- Separate legal entity: A private limited company is a separate legal entity from its shareholders. This means that the company can enter into contracts, own property, and sue or be sued in its own name.
- Easy to raise capital: Private limited companies can raise capital by selling shares to investors. This is easier than borrowing money from a bank.
- Professional management: Private limited companies are usually professionally managed by a board of directors. This gives the company an advantage over other types of businesses.
- Perpetual existence: A private limited company has a perpetual existence. This means that it continues to exist even if one or more of the shareholders die or leave the company.
- Tax benefits: Private limited companies enjoy certain tax benefits in India. For example, they can avail of the benefit of double taxation avoidance agreement.
- Better credibility: Private limited companies have a better credibility than other types of businesses. This is because they are required to disclose their financial statements to the public.
- Better governance: Private limited companies are subject to stricter rules and regulations. This results in better governance and transparency.
- Easier to list on stock exchanges: Private limited companies can list their shares on stock exchanges. This makes it easier for them to raise capital.
- Attracts foreign investment: Private limited companies can attract foreign investment. This is because they are perceived to be more stable and credible.
If you are planning to set up a private limited company in India, Kanoons can help you with the entire process. We can assist you with the incorporation, post-incorporation formalities, and also with the compliance requirements. Contact us today to get started.