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• Introduction of Private Limited Company
• A Private Limited Company Registration in Jaipur
  is a company that is privately held for small
  businesses. The liability of the members of a
  Private Limited Company is limited to the number
  of shares respectively held by them. Shares of
  Private Limited Company cannot be publically
  traded. All the aspects of a Private Limited
  Company are discussed in the article.
• Characteristics of Private Limited Company
• Members To start a company, a minimum number of
  2 members are required and a maximum number of
  200 members as per the provisions of the
  Companies Act, 2013.
• Limited Liability The liability of each member
  or shareholder is limited. It means that if a
  company faces a loss under any circumstances then
  its shareholders are liable to sell their assets
  for payment. The personal, individual assets of
  the shareholders are not at risk.
• Perpetual succession The company keeps on
  existing in the eyes of law even in the case of
  death, insolvency, the bankruptcy of any of its
  members. This leads to the perpetual succession
  of the company. The life of the company keeps on
  existing forever.
• Index of members A private company has a
  privilege over the public company as it doesnt
  have to keep an index of its members whereas the
  public company is required to maintain an index
  of its members.
• Several directors When it comes to directors a
  private company needs to have only two
  directors. With the existence of 2 directors, a
  private company can come into operation.
• Paid-up capital It must have a minimum paid-up
  capital of Rs 1 lakh or a higher amount which
  may be prescribed from time to time.
• Prospectus A prospectus is a detailed statement
  of the company affairs that is issued by a
  company to its public. However, in the case of a
  private limited company, there is no such need to
  issue a prospectus because the public is not
  invited to subscribe to the shares of the
  company.

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1. Minimum subscription It is the amount received
   by the company which is 90 of the shares issued
   within a certain period. If the company is not
   able to receive 90 of the amount then it cannot
   commence further business. In the case of a
   private limited company, shares can be allotted
   to the public without receiving the minimum
   subscription.
2. Name All private companies must use the word
   private limited after their name.

• Benefits Of Private Limited Companies
• When it comes to starting a company, there are a
  few options to choose from. The most common are
  Sole Trader, Partnership, and Private Limited
  Company. There are many advantages of a private
  limited company, so it is the most popular
  option. Here we will be discussing the benefits
  of a Private Limited Company.
• Limited Liability
• The most significant advantage of a private
  limited company is that the owners have limited
  liability. This means that the shareholders'
  assets are protected if the company goes into
  liquidation. If the company goes bankrupt, the
  owners are only liable for the amount they have
  invested in the company. Any company's money
  remains with the company and does not fall on the
  owners' shoulders. This can be a significant
  advantage for new businesses as it protects
  their assets from potential business failures.
  One of the key benefits of setting up as a
  private limited company is limited liability.
• Tax Efficient
• Private limited companies are tax efficient as
  they can claim corporation tax relief on their
  profits. This can be a significant saving for
  businesses and increase profits. In addition,
  private limited companies can pay dividends to
  their shareholders, which are also taxed at a
  lower rate. In addition, there are several other
  tax advantages available to companies, such as
  capital allowances and RD tax credits.

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• Separate Legal Entity
• A private limited company is a separate legal
  entity from its shareholders and directors. This
  means that the company can contract with other
  businesses and individuals and is liable for its
  debts. In other words, creditors cannot seek
  direct payment from the personal assets of the
  business's owners in case of debts or bankruptcy
  on behalf of the business. The only money that
  can be claimed directly in the company's
  obligations and not those incurred by its owners
  on behalf of the business is shareholders. This
  can be essential protection for the shareholders
  as it limits their liability.
• Easier To Raise Capital
• Raising capital for a business can be
  challenging, and private limited companies are
  becoming increasingly popular as they attract
  investors into the business more due to their
  credibility. This can be done through issuing
  new shares, taking out loans, or issuing bonds.
  In addition, it is often easier to approach high
  net-worth individuals for funding when operating
  under a private limited company. This is because
  these potential investors do not require an
  active role in the day-to-day management of the
  business, unlike shareholders in public
  companies.
• Easier To Maintain
• As private limited companies have become
  increasingly popular, much online accounting
  software has incorporated these features into
  their systems, making maintaining finances
  extremely easy with options to set up unlimited
  bank accounts, classes, income, and expenditure
  items. These include filing annual returns and
  reports with Companies House, holding
  shareholders' meetings, and keeping proper
  company records. In addition, private limited
  companies must appoint at least one director and
  one company secretary. This can be helpful for
  small businesses that do not have the time or
  resources to manage all the administrative tasks
  themselves.

6. Flexible Management Structure Private
limited companies are famous for sole traders or
small businesses that do not have the resources
to set up a public limited
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• company. This can be advantageous for companies
  who want to keep control of their operations
  within a small group of people. With private
  limited companies, the owners are given complete
  control over managing the business. This can be
  achieved easily through online systems such as
  'FreeAgent.' This also allows shareholders to
  manage the company via an incorporated board of
  directors and appoint committees where
  necessary.
• Professional Image
• A private limited company gives a professional
  image to businesses, which can be important when
  attracting new customers or investors. It also
  shows that the industry is established and has
  longevity. This is because private limited
  companies are more credible and established than
  sole traders or partnerships. In addition,
  private limited companies often have their
  website and letterhead, giving customers and
  suppliers a sense of trust in the business.
• Protection From Creditors
• As mentioned earlier, one of the critical
  benefits of a private limited company is that it
  offers protection from creditors. This is because
  the company is a separate legal entity from its
  shareholders and directors. If the company goes
  into debt or bankruptcy, creditors cannot seek
  direct payment from the personal assets of the
  business's owners. This can be essential
  protection for the shareholders and directors as
  it limits their liability.
• This means that if the company goes bankrupt, the
  owners are not personally liable for any money
  owed by the company. This can be a significant
  advantage for businesses struggling as it gives
  them some breathing room and time to reorganize
  their finances without worrying about personal
  repercussions.
• Overall, Private Limited Company Registration in
  Jaipur offer several key benefits which can be
  extremely useful for businesses of all sizes. By
  incorporating and adhering to the relevant
  formalities, companies can enjoy limited
  liability, tax advantages, and more significant
  business credibility. In addition, private
  limited companies are much easier to raise
  capital from shareholders and third-party
  investors. With all these benefits in mind, it's
  easy to see why this company is so popular
  amongst entrepreneurs and small businesses.