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Private Limited Company

@Rs. 6,299/-

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What is Private Limited Company ?

A private limited company incorporation refers to the process of legally forming a business entity that is owned by private individuals or corporate entities. In this structure, the liability of the shareholders is limited to the amount of shares they hold in the company. The incorporation process typically involves registering the company with the appropriate government authorities, drafting the company's memorandum and articles of association, and issuing shares to the initial shareholders. Once incorporated, the company becomes a separate legal entity, distinct from its owners, capable of entering into contracts, owning assets, and engaging in business activities.

Advantages of Private Limited Company

Step 1: Protection Against Limited Liability for Directors' Personal Assets

Startups frequently have to take on credit and borrow funds. If a typical partnership failed to make its loan payments, the partners' personal assets and savings would be at threat. A private limited corporation protects the directors' personal assets; only business investments are lost.

Step 2: Increased trust and reputation in the market

The private limited company is a well-known and often used business structure. Businesses, suppliers, and governmental organizations would rather work with private limited companies than sole proprietorships or traditional partnerships.

Step 3: Loans and capital can be obtained easily

Compared to LLPs and OPCs, Pvt. Ltd. companies have more options when it comes to raising capital, including bank loans, venture capitalists, and angel investors.

Step 4: Investors' chosen business structure

As Private Limited Companies are well-structured and have fewer restrictions, investors adore investing in it. Above all, leaving a private limited business is really simple.

Step 5: Simple to draw in employees

As Establishing and maintaining a team is difficult for startups, but because of the trust that comes with a private limited company, hiring new employees and inspiring them with stock options and corporate titles is simple.

Step 6: Simple to Make Sales

Selling a Private Limited firm requires very little documentation and expenses.

Requirements for PVT. LTD. Company Incorporation

  • Atleast 2 shareholders

  • Atleast 2 directors

  • Shareholders/ directors (can be the same individual)

  • One of the directors should be an Indian resident

  • The recommended authorized share capital is INR 20,000

  • For every Director, there is a DIN (Director Identification Number)

  • Digital Signature Certificate (DSC) for one witness and two promoters

Required Documents for Private Limited Company

  • Proposed Directors KYC, address proof, email id, contact number etc.

  • Proposed company’s address, address proof, contact details.

  • Bank Name (In which you want to open the company’s account from the list given on MCA Portal)

  • Digital Signature of 2 Promoters and 1 witness

  • Company PAN Card