As a citizen of India you have enormous amount of opportunities to start your own business in India.
Aim of every entrepreneur is to start their own business and build it into a successful enterprise. This is possible in India with the infinite of opportunities to set your own business. As Indian owner, one can avail immense opportunities to grow and expand their business in India.
Private Limited Company (PVT.), the most popular legal structure for businesses, are those type of companies where minimum number of members is two and maximum number is two hundred. Private limited company has shareholders with limited liability and its shares may not be offered to the general public, unlike those of a public limited company. "Limited by shares" means that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. thenominal value of the shares and any premium paid in return for the issue of the shares by the company. A shareholder's personal assets are thus protected in the event of the company's insolvency, but any money invested in the company may be lost.
A private limited company comes with limited liability of members but has all advantages of partnership firm.Unlike other companies a private limited company has all the advantages of partnership namely flexibility, greater capital combination of different and diversified abilities, etc., and at the same time it has advantages of limited liability, greater stability and legal entity.
By statute, a private limited company must have at least one Director and until April 2008 also had to have a Secretary. The company's articles of association may require more than one director. At least one director must be an individual, not another company. No formal qualifications are required to be a company director or secretary, but the company must comply with many laws and regulations, regardless of such qualifications or the lack of them.
Private Limited Company should be the preferred choice of business if you are planning to raise funding. Start-ups and growing businesses choose to register a company in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. It allows a significant degree of separation between operations and ownership. It gives investors a choice of exiting the company without any hassle by just selling the shares without being liable for company affairs. If a business is planning to go global, then the Private Limited Company is the only form which allows 100% Foreign Direct Investment, without any prior government approval.In this sense, a private limited company stands between partnership and widely owned public company. Identifying marks of a private limited company are name, number of members, shares, formation, management, directors and meetings, etc., The maximum number of directors shall have to be mentioned in the Articles of Association. In the grand of privileges and exemptions, the Companies Act has drawn a distinction between an independent private company and other private company which is a subsidiary to the other .
Indian companies can make investments or operate their business in a number of ways as given below: