The city of Calcutta, now known as Kolkata, serves as the capital of the state of West Bengal. It holds a prominent position as a dominant urban center in Eastern India, renowned for its commerce, culture, transport, and manufacturing sectors. Kolkata stands out as a prime business destination and serves as the commercial and financial hub of India. Additionally, it serves as the main commercial and financial hub for East and North-East India.
Furthermore, Kolkata boasts the distinction of being one of the few cities in eastern India, alongside Bhubaneswar, to have an international airport. Establishing a business startup or a company startup is a crucial decision made by an entrepreneur, involving comprehensive strategic, business, and legal considerations.
If you want to start a business in India, seriously consider Kolkata as a place. Once you have a business idea and decide to start, you will need to follow the Company Formation Procedure 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.
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.
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.