A private limited company, or LTD, is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares. 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
LLP is a separate legal entity, liable to the full extent of its assets; the liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or un-authorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.Creating an LLP is a good way to protect your personal assets from your company’s liabilities, offering protection for your personal assets in the event of a failure. For this reason, forming an LLP is a much secure solution for many small owners than a sole proprietorship or a general partnership.
A limited liability partnership or LLP is similar to a limited company in that it offers limited liability to its members and therefore protects their personal assets. There are, however, three significant differences:
A limited liability partnership is taxed as a partnership and is not subject to corporate dividend distribution tax. There are no directors or shareholders in an LLP instead, it has partners and designated partners. An LLP is governed by the Limited Liability Partnerships Act 2000 and not the Companies Act of 2013.
Private Limited Companies are basically companies/organizations which are held privately (the general public cannot buy shares) for small businesses. These companies are called Limited Liability Companies(LLCs) in the United States format. Limited Liability basically means that the risk to the personal assets of a Shareholder/Director is limited to his/her value of shares of the company..
Private Limited Companies require a minimum of two shareholders. Therefore, any two individuals with valid PAN card and Aadhar card and a proposed office(rented/self-owned) are eligible to start a company in India.
Ministry of Corporate Affairs (MCA) has introduced new SPICe INC- 32 Forms for faster company incorporation. Apart from this, to register a private limited company, e-MoA(INC-33) and e-AoA (INC-34) are also to be filed.
No. Private Limited Companies are held PRIVATELY which means trades of the company are not tradable to the general public.
Private Limited Companies need at least 2 directors to incorporate and the upper limit of the number of shareholders is 200.
A Private Limited Company has to have a minimum of 2 directors and a maximum of 15 directors.
Any individual can become a shareholder in a private limited company. For becoming a director in a company, no professional or educational qualification is required.
Yes, private limited company form of organization is suitable for any type of business. A private limited company is known to be reliable and more trustworthy as compared to other business structures.