Pvt Ltd Company Registration in Trichy- Some important Factors | Smartauditor

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Top Facts that you should beware of Private
Limited Company Registration in Trichy
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Pvt Ltd Company by the name itself says that it
can be owned by common people but it has to be
registered by the Government. The Government
paves way for the common people to start the
business. Minimum two persons are needed to start
a private limited company.
Private limited Company Registration in
Trichy says that maximum shareholders must be
200. They cannot raise money from general public.
The company limited by guarantee is formed by
non-profit organisation like sports club. This
does not have any shareholders.
But it is run by guarantors and these guarantors
agree to pay lump amount towards company debts.
Such guarantor may be a corporate body or any
person. The company limited by guarantee should
have one guarantor and one director. Even one may
take these two positions.
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Private limited Company Registration in
Trichy says that the company limited by guarantee
can act like a company. It can hire employees,
can raise fund from bank, buy or sell property,
defend lawsuit. The company limited by guarantee
takes the name limited.  It can be used for
non-profit purposes. The profit obtained can be
reinvested and the same can be used for promoting
non-profit activities. This form is sometimes
preferred over the industrial and provident
society because company law allows multiple
classes of member and with separate voting
constituencies.
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In a company if 51 of the share is held by other
company then it is called subsidiary company. If
100 of company shares are held by other company
then it is called as 100 subsidiary private
limited company or wholly-owned subsidiary. In
short a subsidiary company is controlled by other
company. Private limited Company
Registration gives an example that George Pvt
ltd Company has 100 shares of the other company
namely Hanes Pvt Ltd Company, and then Hanes Pvt
Ltd Company is the subsidiary of George Pvt ltd
Company. George Pvt ltd Company is also called as
holding company. Holding company is also known as
parent company. So this system is useful for
protecting properties from each others
liabilities. For an example if A is holding
company that has B, C, D and E companies then if
company E is sued then other B,C,D companies are
not affected.
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Private limited Company Registration says about
capital and revenue profit. If the amount earned
by the subsidiary before acquisition is called
capital profit. After acquisition the situation
changes. It is owned by other company. So the
amount earned after acquisition then it is called
revenue profit. Also unrealised profit can be
defined as goods that are not sold at the end of
the year. The holding company receive dividends
from subsidiary company and this dividend should
be eliminated while consolidating profit and loss
account.
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CONSOLIDATION OF BALANCE SHEET
The balance sheet of holding company and
subsidiary company are combined in consolidated
balance sheet. The share of minority and share of
holding company must be considered while
consolidating balance sheet. Private limited
Company Registration says that the date of
balance sheet of holding and subsidiary companies
should be the same. And also the unrealized
profit, dividend, debtors and creditors, bills
receivable and payable, loans and debentures
which are known as common transaction must be
eliminated when preparing consolidation of
balance sheet.
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Advantages of Holding company
Private limited Company Registration in
Trichy says that holding company provides, Buying
power, employees, technical expertise to the
subsidiary companiesCapacity to start new
companies and productsMonetary means.And the
subsidiary company can enjoy the goodwill of the
holding company.
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