Private Limited Company Registration In India | Register Pvt Ltd

By Author: kanakkupillai
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Types Of Private Limited Company
What is a Private Limited Company in India?
A private limited company in India is a distinct legal entity characterized by limited
liability, where the shareholders' liability is restricted to the amount invested in the company.
This business structure ensures a clear separation between personal and corporate assets. In a
private limited company, ownership is divided into shares held by a limited number of
shareholders.
Types of Private Limited Companies
1. Company Limited by Shares:
This is the most common form of a private limited company. The liability of its
members is limited to the amount unpaid on their shares. In the event of liquidation,
shareholders are only liable for the nominal value of their shares.
2. Company Limited by Guarantee:
Unlike a Pvt Ltd Company Registration by shares, this type does not have share
capital. Instead, members provide a guarantee, specifying the amount they will
contribute in the event of winding up. Such companies are often prevalent in non-profit
and charitable ...
... organizations.
3. Unlimited Company:
In this type, there is no limit on the liability of the members. Each member is
personally responsible for the company's debts. While less common due to the
increased risk for shareholders, it provides greater flexibility in financial matters.
Advantages of Private Limited Company
● Credit Availability
● Perform Globally
● Limited Liability
● Increased Value In Marketplace
● Perpetual Existence
● Ease In Transfer Of Ownership
● Separate Legal Entity
● Tax Benefits
● Access to Funding