Private Limited Company
Registration
A Producer Company is a body corporate having an object to one of the following Production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit. It is similar to a private company.
Basic Mandatory Compliance
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Paid-up capital – It must have a minimum paid-up capital of Rs 1 lakh or such higher amount which may be prescribed from time to time.
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Name – It is mandatory for all private companies to use the word private limited after its name.
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Any Non Resident Indian (NRI) or Foreign National can become Directors but there should be at least one Indian resident on the Board of directors.
Benefits of Private Limited Company
1
Limited Liability
Limited liability, asset protection, & no personal financial responsibility in case of failure. Key benefits of setting up a private limited company. Ideal for new businesses
2
Tax Efficient
Private limited companies enjoy tax efficiency, corporation tax relief, lower tax on dividends, & other benefits. Increase profits & save on taxes with this structure
3
Separate Legal Entity
Private limited company: separate legal entity, own contracts, liable for its own debts. Shareholders' assets protected from creditors in case of company's bankruptcy.
4
Easier To Raise Capital
Raising capital easier for private limited companies, attract investors with credibility. Issue shares, take loans or bonds. High net-worth individuals more likely to invest without active role in management.