All about private limited company in India
There are some types of companies which can forms in India such as private limited company, public limited company as well as unlimited company. There are the features of these three types of companies which are in fashion in India.
Private limited company:- the company which has minimum paid up capital of one lakh rupees or higher may be prescribed in articles as per section 3(1)(3) of company act 1956. The features of such company are as follows.
There are some types of companies which can forms in India such as private limited company, public limited company as well as unlimited company. There are the features of these three types of companies which are in fashion in India.
Private limited company:- the company which has minimum paid up capital of one lakh rupees or higher may be prescribed in articles as per section 3(1)(3) of company act 1956. The features of such company are as follows.
1- It can form with only 2 members but restricts the number of members up to 50.
2- It has no freedom to transfer of shares.
3- Under the private limited company, the members can not go for public subscription.
4- It also prohibits the money deposit from others excluding members and their relatives.
5- The shares of private limited company are not listed in any recognized stock exchange.
6- It can start the business immediately after the incorporation of private limited company.
7- The minimum numbers of directors are 2.
8- The company has its own memorandum of association as well as articles of association which is readable by any members and employees.
9- There is no restriction on the number of employees in private limited company, only number of directors can maximum of 50.
10- The company act 1956 states that in private limited company, the members need to obtain the money by its own and they can’t go for public subscription. However, they can take loans from bank or can do other borrowings for the company.
11- The members has unlimited liability in this form of company. They need to pay more and more for paying the loss of company. Means it has unlimited risk
2- It has no freedom to transfer of shares.
3- Under the private limited company, the members can not go for public subscription.
4- It also prohibits the money deposit from others excluding members and their relatives.
5- The shares of private limited company are not listed in any recognized stock exchange.
6- It can start the business immediately after the incorporation of private limited company.
7- The minimum numbers of directors are 2.
8- The company has its own memorandum of association as well as articles of association which is readable by any members and employees.
9- There is no restriction on the number of employees in private limited company, only number of directors can maximum of 50.
10- The company act 1956 states that in private limited company, the members need to obtain the money by its own and they can’t go for public subscription. However, they can take loans from bank or can do other borrowings for the company.
11- The members has unlimited liability in this form of company. They need to pay more and more for paying the loss of company. Means it has unlimited risk
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