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Private Limited Companies

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ca gaurav
Private Limited Companies

As an entrepreneur, developing a new business is an overwhelming & exciting experience. There are a variety of factors which are considered to be risks and pitfalls that are involved in the overall process and can be eliminated. This has been observed that majority of the new businesses & startups end up opting for partnership company registration in indirapuram instead of the private limited company registration in indirapuram with those myths in mind that they would have to manage lesser compliances in case of a partnership firm as compared to a private limited company. 

A private limited company is a business structure which is a legally recognized entity. The private limited company registration in indirapuram & operations are being governed by the Indian Companies Act, 2013 & Ministry of Corporate Affairs (MCA). The most unique feature of a private limited company is that it is a separate legal entity which protects its owners from any personal liability for corporate obligations and debts to a major extent. This offers the shareholders the right to raise equity funds & enjoy limited liability. 

Dilemmas & myths 

Myth 1: Private Limited Company registration is time-consuming and expensive 

Fact: This is a common misconception a private limited company registration in indirapuram is an excessively expensive affair. This used to be quite expensive earlier but the online registration services have made is much affordable in recent years. Also, this would certainly turn out to be a great investment in the long run as there are several benefits attached to the same. 

Myth 2: Partnership and proprietorship do not require an Audit!

Fact: The audit requirement for any specific business is being decided on the annual sales turnover. In case the sales turnover manages to exceed INR 1 Crore in a specific financial year, then an audit is necessarily required. In case the aforementioned amount is not exceeded in a financial year, then the company is exempted from audit. A proprietor is required to maintain a book of accounts in case the gross receipts exceed INR 1.5 lakhs in the previous three years taken together and in case of partnership firm, a book of accounts need to be mandatorily maintained in case the income exceeds INR 2.5 lakhs in any one of the three previous years. 

Summary 

Going for the aptest business vehicle for one’s venture usually goes a long way in deciding your company’s future. So, if you have big plans for expanding your business in the coming years, then you should ideally opt for private limited company registration in indirapuram

Source By : https://www.evernote.com/shard/s400/sh/0a68db7e-a08e-4739-9f35-0b2227b78a2c/7087ceea0fb871c6143575885321bead

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