Overview |
Characterstics |
Advantages |
Disadvantages |
Process |
Documents Required |
Disadvantages
Compliance : Sometimes it becomes very hectic to comply with all the changing norms, rules, regulations and by laws.
Hefty Penalties: To err is human, and in Company law, to err is to pay. Yes, Fines which can range between 5000 to 25 Lakhs and sometimes even more. Some of the mistakes will end up in imprisonment of every officer in default.
Overview
Section 2 (68) of the Companies Act, 2013 defines a private company as:
“A Company having a minimum paid-up share capital as may be prescribed, and which by its articles,—
(i) restricts the right to transfer its shares;
(ii) except in case of One Person Company, limits the number of its members to two hundred;
(iii) prohibits any invitation to the public to subscribe for any securities of the company.”
Simply, a company in which shares can not be bought by common public at large ( ie not more than 200 people)
Such company affix word as PVT LTD at end of thier name such as
Marriott Hotels India Pvt. Ltd.
American Express (India) Private Limited
Pvt ltd companies are first choice for every start up in India.
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