Private Limited Company registration is the most popular form of a “legal structure” for all businesses in India.
A private limited company can have a minimum of two members and a maximum of fifty members.
The directors of a private limited company have limited liability to their creditors and Banks/Creditors are allowed to sell only the assets of the company (when there is a scenario of default).
The creditors do not have the authority to sell the personal assets of directors. Do ensure that your company is registered, for starting a company in India.
- “Company Registration” is the foremost mandatory step for the beginning of a new venture.
- The private limited company registration process is very important, as it provides authenticity to your proposed business structure. Though you need to make sure that you have all the required “Private limited company registration documents”.
- In the long run, the registration will provide you a great number of advantages such as “from registering in a hassle-free manner to dissolving easily also.”
- “Start-ups and growing companies” prefer the tag of a “Private limited company”.
- Contact LegalRaasta for “Private limited company registration in India”.
More about Private Limited Company
The liabilities of its shareholders become limited when they can raise outside funding in an easy manner.
They also offer stock options to their employees (so that top talent can be brought into the company).
Private Limited Company Registration can be done through LegalRaasta (A Company registration agent) which has it’s offices in Delhi NCR, Mumbai, Bengaluru, Chennai, and other Indian cities.
If you want to go for “Private limited company registration in India”, then you can completely rely on LegalRaasta (Company registration services provider) because we will assist you with the all the technicalities such as “Private limited company registration process”.
Our experts will provide all the relevant information related to a Private limited company’s “registration fees, process, name availability, registration certificate, etc.”
Private Limited Company Registration Benefits
Protection Of Personal Assets of The Partners:
In the case of a Private Limited Company’s shareholders, they tend to have limited liability.
So if you are a shareholder, then you will be considered liable to pay the liability of the company. But only to the limit of your contribution in the company.
LegalRaasta’s experts in company registration experts can help you in better understanding the “Private limited company registration process in India”.
A Private Limited Company is Separate Legal Entity in the Eyes Of The Law:
In other words, the partners/owners of a PLC, are a completely different entity according to the Indian constitution.
So indirectly a company will be upheld for efficient management of it’s debtors and creditors, assets and liabilities.
You Can Raise Capital Easily:
A private limited company, which is registered in India, must meet a certain number of compliance requirements.
This form of company structure is largely preferred by entrepreneurs.
Because it helps them to raise the necessary funds via equity. It also allows them to expand and limits their personal liability.
It Comes With The Benefit Of Continuous Existence:
It has the most important benefit, which is known as “Perpetual Succession”.
It means that it’s existence will be continuous until it is legally dissolved.
Due to it being a separate legal entity, it remains unaffected by the departure or death of any member.
Even though there may be a change in existence, it will continue it’s existence.
You will receive a “Private limited company registration certificate”, upon completion of the process.
Advantages Of A Private Limited Company
There are multiple reasons to get your company registered as a “Private limited company”:
Preferred by banks, VCs & investors.
Easy to allocate and redistribute shares to other directors/ people who have invested money in the company.
Acts as a separate legal entity which limits your liability.
Offers the flexibility of a partnership firm and the advantages of a Public Ltd Company.
Easy to register, manage & run.
The company can be very smoothly dissolved.
Comparison Of Your Different Types Of Business Requirements
| Factors To Be Considered | Private Limited Company | One Person Company | Sole proprietorship | Limited Liability Partnership | Partnership Firm |
|---|---|---|---|---|---|
| Ideal For | Startup and growing Companies | Single promoters | Small Traders and Manufacturers | Professionals | Small business & Home Business |
| Requirements | 2 Directors/Shareholders | 1 Director/Shareholder | 1 Proprietor | 2 Partners | 2 Partners |
| Initial Investment | Not Required | Not Required | Not Required | Not Required | Not Required |
| Tax Advantages | Few benefits | Few benefits | Minimal | Most efficient | Minimal |
| Compliances | High | High | Minimal | Low | Minimal |
| Limited Liability Protection | Yes | Yes | No | Yes | No |
| Time Taken | 5-10 days | 5-10 days | 2-5 days | 10-15 days | 5-10 days |
Frequently Asked Questions
“Private limited company registration process” is a service, which our firm provides.
It is the most popular form of a “legal structure” for all businesses in India.
A “Pvt Ltd.” company is incorporated under the Companies Act 2013 and it is governed by the Ministry of Corporate Affairs (MCA).
Contact the team of experts at LegalRaasta for “Private limited company registration in India”.
You can go through the “Private limited company registration process” using our expert services.
This whole process usually takes 10-15 days to complete. You are only required to fill out a 10-minute questionnaire.
After the consultation, we will help you with “Private limited company registration documents”, which are required to complete the “Private limited company registration process in India”.
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After this is done, the Certificate of Incorporation is granted to the company.
Upon successful completion of the registration process, you will receive Private limited company registration certificate”
It is only possible if you provide sufficient proof of it. This address would be where the company receives important information (if any) from the MCA or any other concerned authorities.
Though you must you must make sure that you provide all the “Private limited company registration documents”.
After completion of registration process, you will receive the “Private limited company registration certificate”.
• The company must appoint an auditor.
• The company should conduct at least one AGM (Annual General Meeting) and at least 4 board meetings (one in each quarter).
• An auditor must audit the books of the company
• Furthermore, a company shall fill the form AOC-4 and MGT-7 as a part of annual compliance within the specified time frame.
• There should be the annual filing of the ITR and registrar of the companies
• This type of company has greater stability
• It protects the owner’s assets in the case of bankruptcy
• Attracts more clients
• It is easier to procure bank loans and investments from the investors
• It is very easy to sell a Private Limited Company, as there is very little documentation required and the cost involved.
• Only corporation tax is charged (which is usually lower than other forms of taxes)
You need to have a minimum capital of Rs.1,00,000 to start a private limited company.
You need not have this amount in hand or your bank account. You can show this amount as the pre-incorporation expense of the start-up.
Also, you can show the capital as infused in the assets.
Do ensure that fulfill all the conditions involved in the “Private limited company registration cost” criteria.