Here are 7 reasons to incorporate a startup as a private limited company

75% of the 4 startup companies that are born each day in India are registered as a Private Limited Company. This blog is meant to remind you of the importance and necessity of incorporating your startup. Although incorporation gives a company a legal entity form, it is not all that simple. We'll look at the top 7 reasons to incorporate a startup as Pvt Limited Company Registration. It is essential to have the right information available for entrepreneurs. We are often on our own.

1.   Corporate personality: The company is an independent legal or juristic entity of its members (directors). Subscribers to the memorandum, and all other persons, will be able to exercise all the functions of an incorporated company under the Act. They will also have perpetual succession and a common seal that gives them the power to acquire, hold and dispose of property, tangible or immovable.

2.   Limited Liability No company member is obligated to contribute more than the nominal value of the shares he holds, which will remain unpaid.

3.   Perpetual Succession No matter what happens to the board members, the company remains the same entity and has the same privileges, immunities, estate, and possessions. The corporate entity's existence and continuity are not affected by the death or insolvency of any of its members. The company will exist indefinitely until it is wound up.

4.   Transferable shares: Any member's share or interest in a company may be a movable property and transferable according to the company's articles. This encourages members to invest in shares so they can be en-cashable at any time. It provides liquidity for investors, as shares can be traded on the stock market or on the open markets. It provides stability for the company.

5.   Separate property: The company's property is not the property its shareholders own, but the property it holds is the company itself. The real owner of all property is the company. It controls, manages, and disposes of it. Even a majority shareholder or managing director of a company can be held responsible for criminal misappropriation of funds or property.

6.   The company has the right to sue and can be sued by others. The board members and the team are not liable for any wrongdoing.

7.   Flexibility & Autonomy: PrivateLimited Company Registration has the autonomy and freedom to create its own policies and implement them via Memorandum & Articles of Association.