The city of Surat, located in the Indian state of Gujarat, was once a thriving seaport but has now transformed into a prominent hub for diamond cutting and polishing. With its status as the eighth-largest city and ninth-largest urban agglomeration in India, Surat holds the administrative capital of the Surat district. Moreover, a study conducted by the City Mayors Foundation revealed that Surat claimed the title of the world’s fastest-growing city in 2016.
Moreover, Surat was awarded “best city” by the Annual Survey of India’s City-Systems (ASICS) in 2013. It is selected as the first smart IT city in India which is being constituted by the Microsoft CityNext Initiative tied up with IT services majors Tata Consultancy Services and Wipro.
Therefore, the scope of setting up a business can turn out to be quite beneficial as well as profitable. So we can say that Surat happens to be a better place to do business in India.
If you are looking to build a business in India, Surat 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 must follow some Company Formation Procedures in India.
Introduction to Pvt Ltd Company
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.
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.