What is actually a private limited company, what are its advantages and disadvantages and should we register it before starting a company?

What is a Private Limited company?

• A Private Limited Company or Pvt. LTD Company, is a kind of privately held small business entity
• This kind of business entity limits proprietor risk or Liability to their shares 
• Also the Pvt. LTD Company confines the number of investors or Shareholders to 50 and restricts investors or shareholders from publicly exchanging shares

Advantages of Private Limited Company:

• Reduction in Liability:  

The main advantage for the investors is that, in the event of the company closure due to monetary issues, or if in the event that there is any misrepresentation, the proprietor will dependably have the privilege to secure his/her benefits/share capital

• Funding: 

A Pvt. Ltd company can get funds for their company through their friends and family by giving them equity shares. It syndicates both value and obligation assets to have an ideal capital structure

• Team building: 

By offering Employee Stock Options (ESOPs) to the employees a Pvt. LTD Company can bring ownership status to their employees

• Reliability: 

As the company is enlisted as a corporate substance, the believability is enhanced, and also it builds reliability in the market

• Perpetuity:

Even after the demise and exit of any investor or the founder, the firm proceeds and its reality is protected

• Foreign  Direct Investment (FDI): 

Foreign deposits/ investments through a simple channel are taken into account for a Pvt. LTD Company

Disadvantages of Private Limited Company:

• Registration  Process: 

The registration process is a bit hectic if directions or rules and regulations of the Ministry of Corporate (MCA) are not clear. It takes a minimum of 10-15 days for the total process or complete incorporation process which incorporates, the age of DSC, DIN, Certificate of Incorporation, Company PAN, AoA, MoA, etc.,

• Yearly Compliances: 

It is very critical to document the records at MCA every financial year. A Chattered Account, for the most part, deals with this, to document the assessments for your private constrained organization. All these services comes at an added cost

• Cannot be Listed in Stock Exchanges: 

The posting of the organizations for the first sale of stock is not possible

• Limited Shareholders: 

In a Pvt. Ltd company, the number of investors or individuals can’t surpass more than 50.

In the next article I will be talking about the other type of company registrations and which is suitable for startup companies.

For more information,

People can get in touch with me in LinkedIN, Facebook, Instagram

PK,

PK Enterprises.

Be your OWN BOSS : New FRANCHISE alert.

 In General:

Laundry industry is an age old industry and it has taken many twists and turns to come into the present form. From manual washing to machine washing the industry has seen many new changes.

The laundry industry in the western world has nicely taken a shape because of their cultures and other factors.

In our part of the world, the transition is a bit slow but it is surely picking up.

This pandemic is an opportunity in disguise for many people who want to become entrepreneurs. Jobs are lost and the unemployment rate in India is at an all-time high.

PKC Laundries:

PKC Laundries is an online laundry services based out of Hyderabad. It was started in December 2015. 

To all those who want to be an ENTREPRENEUR and be their OWN BOSS here is a real big FRANCHISE opportunity from PKC LAUNDRIES.

The two different type of Franchise models PKC is offering in Hyderabad are-

• Standalone Stores
• Live Studios

• STANDALONE STORES:

PKC is offering standalone stores throughout the city of Hyderabad and also in gated communities. People who want to start PKC franchise in a gated community can also avail this wonderful opportunity.

A store in which people can drop and pick up their clothes. The store acts as a drop point. A person will be situated in the store and will collect the customers clothes. These clothes will be processed in a centralized factory. The factory can either be located in the outskirts or in the center of the city. There can be multiple standalone stores for a particular Laundry and Dry-Cleaning Company. All the clothes will be brought to the centralized factory and the processing will be done in the factory itself. Once the processing is done, all the clothes will be again sent back to the stand alone stores. The various types of services they provide here are-

• Wash and Iron
• Wash and Fold
• Dry-Cleaning
• Steam Iron
• Rolling etc.,

Requirements:

Store space: 150-200sq.ft

PKC Responsibilities: 

• Setup the store
• Training of the staff
• Backend operations(processing of the garments)
• Logistics
• Marketing/Sales

Franchise Responsibilities: 

• Generate more SALES, 
• Customer Relationship
• Store Maintenance

Financials:

6 Lakhs

• Live Studios:

PKC is offering first of its kind LIVE LAUNDRY STUDIO in Hyderabad

This is relatively a new concept and it is at a very nascent stage in India. Processing of the garments is done in the store itself and in front of the customer. Customer has a first-hand experience on how his/her garments are processed. The various types of services a live studio can offer are-

• Wash and Fold, 
• Wash and Iron, 
• Dry-Cleaning 
• Steam Iron
• Rolling etc.,

The type of machines we will be having in the store are-

• Washer Extractor
• Tumble Dryer
• Steam Iron Tables with Boiler
• Automatic Ironing Machines (which can iron a shirt or a trouser within 60 seconds)

Requirements:

Store space: 500-800sq.ft

PKC Responsibilities: 

• Setup the Live Studio
• Training for the Franchise Partner
• Marketing/Sales

Franchise Responsibilities: 

• Generate more SALES, 
• Processing of the garments
• Customer Relationship
• Store Maintenance

Financials:

16Lakhs

For more information,

People can get in touch with me in LinkedIN, Facebook, Instagram