DISTINCT PERSONALITY OF COMPANY

                      The significant characteristic of an incorporated company is that is constituted as a distinct and independent person in law, an artificial person entirely form the members comprising it. a company as a legal person can enter into contract with others like a natural persons and holding property in its name . it may sue other and be sued by other for enforcement of contractual obligation. It has, however, been held that a company is not citizen and eligible to claim fundamental right guaranteed to natural citizen by the constitution – State Corporation of Indian ltd Private Limited Registration Kerala.                             

NATURAL GROWTH A PRIVATE COMPANY

                                                 A private company limited by share provide all the advantages of incorporation and is a good medium for operating and managing enterprise so long as generally , the activity in which it is engaged is small , the owners of the business are few persons related closely or otherwise associated to each other and the resources  required for managing the business are either exclusively provided by the owners or met partly by the promotes and partly from outside business which may need large financial resources . it may be necessary for this purpose for the private company to convert itself into public and draw resources by offer of it securities to the public and also get financial assistance form financial institution and banks more freely Private Limited Registration Kerala.

PRIVATE COMPANY MAY BE FIRST STEP

                                           There may be occasions when, even where a mega project its proposed to be undertake requiring large resources, the promoter may find it expedient first to register the company as a private company one and convert it into a public company at a subtitle stage after incorporation. During the said interim period the promoter may find it easy and convenient to carry on with the preliminary formalities as a private company Private Limited Registration Kerala.

LARGE NUMBER OF COMPANIES WHERE SCOPE LIMITED

                                           There are a large number of companies which are small and which are of interest only to members of a family or to close association. Their scope is limited and they are bound to continue as private company for a long time Private Limited Registration Kerala.