Ahmedabad is the largest city and former capital of the Indian state of Gujarat. It is the administrative headquarters of the Ahmedabad District and the seat of the Gujarat High Court. It is said to be the fifth most populous city in India.
Ahmedabad has emerged as an important economic and industrial hub in India. Also, it is the second-largest producer of cotton in India, and its stock exchange is the country’s second oldest.
In 2010 Ahmedabad was ranked third in Forbes’s list of fastest-growing cities of the decade. The Times of India chose Ahmedabad as India’s best city to live in. Therefore, starting up your business or a company here will undoubtedly result in great success and profit.
If you want to build a business in India, it is the place you should consider with utmost importance. Once you have come up with a business idea and decided to start a business you will need to follow some procedures to register a company in India.
Amongst small, medium, and large businesses in India, a Pvt Ltd Company is considered one of the most popular legal structures. Anyone who is looking to build a scalable business can choose it. Its Registration requires a minimum of two members and a maximum of two hundred members.
Introduction to Pvt Ltd Company
A Pvt Ltd Company is a type of small business entity that is held privately. In addition, the liability of members is limited to their shares and there can be a maximum of 200 members. Further, a Pvt Ltd Company cannot invite the general public for subscribing to its securities. Ministry of Corporate Affairs (MCA), Companies Act 2013, and Companies Incorporation Rules, 2014 govern the Pvt Ltd Company registration in India.
The liability of shareholders is limited towards creditors, it is restricted only to the unpaid amount of shares. For that reason, banks/creditors can sell only the company’s assets but not the personal assets of directors and shareholders in case of default.
As a Private Limited Company can raise funds from outside India limits the liabilities of its shareholders, and offers employee stock options to attract top talent, it is generally chosen by startups and growing businesses.
Moreover, as these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend to be viewed with more credibility than a Sole Proprietorship or General Partnership.