Coimbatore city also known as Kovai and Coyamuthur is a major city in the Indian state of Tamil Nadu. It is the second-largest city by area and population after Chennai and the 16th-largest urban agglomeration in India. Also, a major hub for manufacturing, education, and healthcare and is also the fastest-growing city in India.
Moreover, Coimbatore is ranked 15th on the list of most competitive Indian cities. A business start-up or a company start-up is a decision of an entrepreneur and requires in-depth strategy, business, and legal considerations. Lastly, starting up your business or a company here will undoubtedly result in great success and profit.
Therefore, if you are looking to build a business in India, Coimbatore is a place you should consider. Once you come up with a business idea and decide to start a business you 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.
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.