Chennai is also known as Madras is the capital of the Indian state of Tamil Nadu. It is the biggest cultural, economic and educational centre. It is the sixth most populous city in India. Chennai is among the most visited Indian cities by foreign tourists. The Quality of Living Survey rated Chennai as the safest city in India. The city is India’s second-largest exporter of information technology (IT) and business process outsourcing (BPO) services. Chennai is a state which offers us enormous business opportunities and scale of enterprises. A business start-up or a company start-up is a decision of an entrepreneur and requires in-depth strategic, business and legal considerations.
If you are looking to build a business in India, Chennai is a 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.
Private Limited Company is considered one of the most popular legal structures amongst the small, medium, and large businesses in India due to its various advantages. It can be chosen by anyone looking to build a scalable business. A Private limited company registration requires a minimum of two members and a maximum of two hundred members.
A Private Limited Company is a type of privately held small business entity, in which the owner’s liability is limited to their shares, the firm is restricted to having 200 or fewer shareholders, and shares are prohibited from being publicly traded. A shareholder of a private limited company has limited liability towards creditors, it is restricted only up to the unpaid amount of shares. In case of a default, banks/creditors can sell only the company’s assets but not the personal assets of directors and shareholders. Start-ups and growing businesses choose Private Limited Company registration in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders, and enables them to offer employee stock options to attract top talent. As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Sole Proprietorship or General Partnership.