When you see the words' Private Limited Company on a business card, it's a good bet that the company is not as closely regulated as a registered one. Private limited companies can be set up in a wide variety of ways and they may have as many, or as few, members as required by the law. You should be aware that some people are very capable of luring unsuspecting people into private limited companies who don't really want to be there.
Despite what you may have been told, there are several types of private limited companies. Most commonly known as partnership firms, these are simply bodies that combine the efforts of two or more individuals to operate a business. Though it may be less attractive, there are also some instances when a small company or one-person firm is formed by an established company.
One type of Private Limited Companies that you should be familiar with is the limited liability company (LLC). This is sometimes referred to as the "white hat"black hat" tax structure.
A quick online search will reveal countless reports on this topic and I strongly recommend you spend some time researching it before diving in too deeply. The basic idea behind a limited liability company is that, in general, the owners do not have to worry about being personally liable for a bad debt or for the debts of others.
As well, a limited liability company is legally allowed to deduct its expenses from the income of the business. In other words, if the LLC loses money, the owners do not have to pay it back to anyone. However, as with any kind of business, there are some legal restrictions to be aware of.
If you set up a limited liability company, it is wise to understand that certain debts can only be paid by your business. Also, the company cannot be sued by another business or even another individual. In other words, even if you die, the company does not have to pay the debts of your estate.
What happens in the event of the company going out of business is that it becomes a burden to the owner and any owners that are left in the business. In fact, it will cause a great deal of problems and a whole lot of operational expense until the company takes a reasonable amount of money to cease operations.
Basically, you can't run a company this way. This is why there are limited liability company rules and regulations that state that the company must remain a legally recognized entity until the paperwork is finished and the new company can take on clients.
A Private Limited Company can be set up by registering it with the Company Office. You should be aware that in order to be eligible for registering an LLC, the founders must be registered individually. However, if the founder sets up the company as a partnership firm, it can be listed together.
There are several different types of partnerships that a company can use to operate their business, including limited liability companies. If you choose a limited liability company, you can protect yourself from having to pay back a mortgage or from any legal issues that may arise.
All you have to worry about are those types of problems that arise with other types of businesses, and you can protect yourself from all of them. At least for now, the limited liability company is an ideal type of company structure because it is both easy to operate and very cost effective.
A Private Limited Company is very easy to set up and it is fairly inexpensive to start one up. However, be aware that there are a number of private limited company registration issues to be aware of and in most cases you can either solve them yourself or have someone handle them for you.
The company is a formation process in India, It has the best consultants on its team. We invest the time and effort efficiently to understand your needs. Our team of private economic advisors and tax advisors is there to assist you not only in registering a company in Delhi and India but also in providing a wide range of financial services. This way, your company will operate smoothly and effectively.
ReplyDeleteCompany Registration Consultant In Delhi