Coimbatore city which is also known as Kovai and Coyamuthur is a major city in the Indian state of Tamil Nadu. Coimbatore is the second-largest city by area and population in Tamil Nadu after Chennai and the 16th largest urban agglomeration in India. It is a major hub for manufacturing, education and healthcare in Tamil Nadu and is also the fastest-growing city in India. Moreover, Coimbatore is ranked 15th in the list of most competitive Indian cities. Whether it is a business start-up or a company start-up is a decision of an entrepreneur and requires in-depth strategic, business and legal considerations. Therefore, starting up your business or a company here will undoubtedly result in great success and profit.
If you are looking to build a business in India, Coimbatore 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.