Karnataka is the state in the south western region of India. Originally also known as ‘ The state of Mysore’. The economy of Karnataka is the third largest economy in India. Karnataka is the manufacturing hub for some of the largest public sector industries in India. Karnataka also leads the nation in biotechnology. A majority of the silk industry in India is headquartered in Karnataka.
If you are looking to build a business in India, Karnataka 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 structure 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 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 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 shareholder. 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.