Private Limited Company Nature of Business
The Provisions of Private Company and Public CompanyThe meaning of private company and the manner in which a public company is defined bear out the argument that these two categories of company are naturally exclusive. A private limited company which has become a public company by section 43.The basic difference between of this provision defines one hand a company which is incorporated as a public limited company under section (44) and on the other hand a private company which has become a public company by reason of the registration of section (43).There are three specific type of company to attend a distinct place in the scheme of companies act they areThe Private companies of schemeThe Public companies of schemePrivate companies which has becomes public company by virtue of section 43.Private Limited Company of NatureA private limited company is in substance of a partnership and the relationship among the members in the matter of the conduct of the affairs of the company should be examined on the footing that they are partners so long as the company continues to be a private limited company registration.The definition of section (3) with in the object of a private limited company may control the shares to transfer and place certain restrictions on it.To constitute a private company the requirements of sections (3) had to be compiled with and such provisions to be included in the objects.The advantages and exceptions shall fail designated of the specification of company advised on private companies treated as it is not a private limited company.Private Company Deemed to Public CompanyA private limited company have be deemed to be a public limited company under the following situations.Where not less than twenty five percent of the paid up share capital of a private company having a share capital is held by one or more bodies to incorporate in Chennai.The private companies average turn over is not less than the prescribed amount during the three immediately preceding consecutive financial years. A public company share capital of twenty percent of the paid holds not less than a private company.Where a private company invites or renews deposits from the public.
Content
PRIVATE LIMITED COMPANY NATURE OF BUSIN
ESS
Private Limited Company Nature of Business
The Provisions of Private Company and Public Company
The meaning of Private company and the manner in which a public company is
defined bear out the argument that these two categories of company are
naturally exclusive.
A private limited company which has become a public company by section 43.
The basic difference between of this provision defines one hand a company
which is incorporated as a public limited company under section (44) and on the
other hand a private company which has become a public company by reason of
the registration of section (43).
The Provisions of Private Company and Public Company
There are three specific type of company to attend a distinct Place in the scheme
of companies act they are
The Private companies of scheme
The Public companies of scheme
Private companies which has becomes public company by virtue of section 43.
Private Limited Company of Nature
A private limited company is in substance of a partnership and the relationship
among the members in the matter of the conduct of the affairs of the company
should be examined on the footing that they are partners so long as the company
continues to be a private limited company registration.
The definition of section (3) with in the object of a private limited company may
control the shares to transfer and place certain restrictions on it.
To constitute a private company the requirements of sections (3) had to be
compiled with and such provisions to be included in the objects.
The advantages and exceptions shall fail designated of the specification of
company advised on private companies treated as it is not a private limited
company.
Private Company Deemed to Public Company
A private limited company have be deemed to be a public limited company under
the following situations.
Where not less than twenty five percent of the paid up share capital of a private
company having a share capital is held by one or more bodies to incorporate
in Chennai.
The private companies average turn over is not less than the prescribed amount
during the three immediately preceding consecutive financial years.
A public company share capital of twenty percent of the paid holds not less than
a private company.
Where a private company invites or renews deposits from the public.
Private Limited Company Registration Name
of the Prospective Company
The private limited company registration promoters may choose any suitable
name for the expected company, subject to the restrictions under the Act section
20, companies act 1956.
The emblems and manes avoidance of incorrect use act of 1950 and guiding
principles in this connection by the department of company law administration.
A private limited company must not be registered by a name which in the
opinion of the government is undesirable companies act 1956.
Private Limited Company Registration Name
of the Prospective Company
A private limited company registration name which is exact with or too
practically feature the private limited company name by which a company in
existence has been previously registered may be deemed to be undesirable by
that government section.
The purpose is to prevent persons to use a name having the likelihood of
deception or confusion. It is nothing new because the principle extends equally
to the use of names of partnership firms and individuals.
The
registrar
is
empowered
to
refuse
private limited company registration in Chennai on this ground.
The final stages of this company must be Limited in case of Private
Limited and Public Limited Companies.
The Private Limited Company Names and Emblems
No person under the emblems and names avoidance of wrong use act of 1950
shall use or continue to use any name of the private limited company or emblem
stated in the list without the earlier admission of the authority or of such officer
of the government authorized by the central government.
The schedule specifies a list of items for emblems names at this end of this part
under
other
particulars
authority
shall
be
register
and
the
private limited company which bears any such name in the section of improper
use act of 1950.
The Private Limited Company Names and Emblems
The department of private limited company law affairs vide its circular has
issued for deciding case of making a name available for registration under the
companies act 1956.
Once the promoters decide the name an application in the prescribed form which
may be obtained from the officer to the secretary of companies of the state
where the registered office of the private limited company registration is
situated.
The registrar may or may not approve the name. In case the name is not
approved then new names will have to be submitted it is better to avoid rejection
with in the period of 3 months.
The approval is usually valid for 3 months with in which period the new
company registration in Chennai may be registered and a new application
should be made with prescribed fees to register new company.
Privileges Enjoyed by Private Limited Company
Registration
The basic differences between private companies and public companies whether
privileges or otherwise will at least suggest better case of formation of private
companies over public companies and the association of a private company
restrict the transfer of shares but there is no restriction for public company
transferable.
The minimum number of director in a private limited company is two and three
for the public company and no such question arises for a private company. A
private may commence its business immediately to incorporation as soon as
registered.
But a public company before it could begin the business must have from the
registrar of associations and a documentation of onset of business section 149 in
the companies Act 1956.
Privileges Enjoyed by Private Limited Company
Registration
The basic differences between private companies and public companies whether
privileges or otherwise will at least suggest better case of formation of private
companies over public companies and the association of a private company
restrict the transfer of shares but there is no restriction for public company
transferable.
The minimum number of director in a private limited company is two and three
for the public company and no such question arises for a private company.
A private may commence its business immediately to incorporation as soon as
registered.
But a public company before it could begin the business must have from the
registrar of associations and a documentation of onset of business section 149 in
the companies Act 1956.
Private Limited Company Registration Team
Management
In the private limited company registration manages his affairs the way he likes.
The partners also are better and private limited companies are virtually the
extended form of partnerships.
Because
in private limited company registration in Chennai and
partnership
merge the ownership and control virtually.
The divorce of merge the ownership and management instead of merger takes
place in public limited company registration.
In the post of public limited company to appoint better and higher skilled
persons in the management team.
They should be men of understanding and integrity is a part of the shareholdings
may still actually control the private limited company registration business.
Private Limited Company Registration Team
Management
The companies may be either widely held or closely held in the company
registration widely held the public are substantially interested but not so in
closely held the company registration in Chennai.
The private limited company registration is closely held companies are liable to
positive exceptions liable to their income at estimate which tax are higher than
the useful rates in the case of generally held companies.
Again the companies are required, likely to positive exceptions to distribute
premium up to the legal rate of their income in the private limited company
registration are liable to pay additional distributed profits.
