Lucknow, the capital city of the Indian state of Uttar Pradesh, serves as the administrative headquarters of both the eponymous district and division. It has always held a reputation as a multicultural city, thriving as a cultural and artistic hub in North India.
Furthermore, Lucknow retains its significance as a pivotal center for governance, administration, education, commerce, aerospace, finance, pharmaceuticals, technology, design, culture, tourism, music, and poetry. Thus, it emerges as an excellent location to initiate your business or company.
If you are seeking to establish a business in India, giving due importance to Lucknow is imperative. Once you have formulated a business idea and made the decision to commence operations, you will need to adhere to certain procedures for company registration in India.
Small, medium, and large businesses in India consider a Pvt Ltd Company as one of the most popular legal structures. Anyone looking to build a scalable business can choose it. Registering a Pvt Ltd Company requires a minimum of two members and allows for 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.