Directors are responsible for controlling the management of a company. A Private Limited Company can have a minimum of 2 and a maximum of 15 directors. However, the responsibility of the first directors of the company is way more than the subsequent directors. Therefore, choosing first directors of a company should be done with utmost careful consideration, and hence is another key decision that should be taken before setting up a company.
A company can be formed for any lawful purpose, However, we need to clearly choose the main or primary business activity for which the company is being formed. The promoters should restrict the activity to one class of business only, while legally incorporating the company with the Registrar of Companies.
The requirement of capital depends on the needs of a particular business. While there are some businesses where the law has prescribed a minimum capital for the formation of businesses, that is not the case with a Private Limited Company. Therefore, it is at the discretion of the company to choose an initial capital for the company. This decision is also considered one of the most important decisions to be taken before establishing a Private Limited Company.
We hope that this blog has been helpful for you to understand the key decisions that are to be taken before starting a Private Limited Company, and that you can now make an informed decision over the legal structure you wish to establish your business with. How can Setindiabiz help?