The liability of the members is limited to the amount unpaid to the company with respect to the shares held by them.Therefore, members cannot be held personally liable to pay more than the value of their shares.Most private and public are limited by shares and it is the most popular form of business in India.
Here the members’ liabilities are limited to the amount of money they guarantee to pay in case the company is wound-up. Most non-profit organisations and charitable societies follow this pattern, as the owners don’t seek to gain money from the operations of the company.Such companies may or may not have a share capital, but, in most cases, companies limited by guarantee have no shareholders or share capital.
The liability of members is unlimited in this type of private companies. Personal assets of members can be attached and sold when the company is being wound-up.
An individual wants to launch a business however, confused about the kind of legal structure of business he should opt for. His decision is going impact on how much money is required for launching business, cost of registration, amount of paperwork, how much he has to pay in taxes and personal liability he will have to face. While making such decision, Private Limited Company is likely to jump in his mind first. Private Limited Company is the most popular option to start a business.
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No minimum capital required
Shareholders/Members
Directors
LIST OF DOCUMENTS REQUIRED (IN CASE DIRECTOR/SUBSCRIBER IS INDIAN):
ID proof
Address proof
Passport size photograph of subscribers for MOA and AOA
Registered Office Proof
DOCUMENTS REQUIRED FROM FOREIGN NATIONAL
ID proof
Declaration by foreign national
Apply for Name of the company
Apply for DSC
Apply for registration
Certificate of Registration
Limited numbers of members
Centralized Authority
Small capital
Restriction on transfer of shares
Restriction on public deposits
Stock exchange