Limited Companies in India: What You Should Know Before Starting One
Launching a business in India involves a series of important choices, from selecting the right legal structure to understanding the regulations that govern it. Among the various options, limited companies have emerged as a popular choice for entrepreneurs who want credibility, legal protection, and room to grow. But what exactly is a limited company, and why do many business owners prefer this route? What Is a Limited Company? A limited company is a separate legal entity from its owners. This means that the financial liability of shareholders is restricted to the amount they invest. Simply put, if the business faces losses or debts, personal assets like homes or savings are safe. This feature allows entrepreneurs to take calculated risks without putting personal wealth on the line. In India, limited companies come in two main types: Private Limited Companies (Pvt Ltd) and Public Limited Companies (Ltd) . While both carry the “limited” designation, they differ in ownership ...