All you need to know

Private Limited Company in India is one of the popular forms of business entities. Approximately 90% of companies in India are registered under Private Limited Company. There are more than 150,000 companies that are being registered on a yearly basis. It is a separate legal entity with limited liability and perpetual existence incorporated now under the Companies Act, 2013.

A Private Limited Company offers limited liability and legal protection to its shareholders. A Private Limited Company in India lies somewhere between a partnership firm and a widely owned public company. It can be registered with a minimum of two people. A person can be both a director and shareholder in a Private Limited Company.

The liability of the members of a Private Limited Company (PLC) is limited to the number of shares held by them. A Private Limited Company in India can begin with operations after getting the Certificate of Incorporation. A PLC can be incorporated within 15 working days.

How to start / form / make a Private Limited Company?

Steps to be taken to get a new company incorporated:

Selection of a suitable name

MOA & AOA drafting

Application to concerned ROC

Filing of the Forms & Documents

Registration of a Pvt Ltd Company

Hence, Incorporating a Private Limited Company is even easier now .

Documents Required for Private Limited Company registration

Documents required for Private Limited

1) PAN card for each Directors

2) ID Proof – Driving License/ Passport or Voter ID of each Directors

3) Address Proof – Latest Bank Statement OR Telephone/Mobile Bill of each Directors

4) Address Proof of The Company – EB CARD or GAS Bill

5) Passport Size photo of each Directors.

6) email and mobile number of each Director

Benefits of Company Registration

Registering a company offers many benefits. A registered company increases the authenticity of your business. It helps your business:

Shield from personal liability and protects from other risks and losses
Attract more customers
Procure bank credits and good investment from reliable investors with ease
Offers liability protection to protect your company’s assets
Greater capital contribution and greater stability
Increases the potential to grow big and expand

This is a non-Governmental organization which is secretly held for small business. The liability of the individuals from a Private Limited Company is limited to how much share separately held by them. Shares of Private Limited Company can’t be publically exchanged.

Advantages of Private Limited Company

Limited risk to personal assets in Private Limited Company.
It is easy to fetch funding in a private limited company by transferring of shares.
For a private company, the earlier minimum number of the share capital was Rs. 1,00,000, but now there is no such minimum capital compulsion
The share of the pvt. Ltd company is transferable by a shareholder to any other person.
Foreign investor can invest their fund directy to the private limited company.
Registering your business as private limited company will help you to attracting the investor helps to competing the market of your industry.
Private limited company are not pressurized by the stock market and you don’t have to worry about shareholder.
The limited company can focus long-term earning without any hesitance.