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Private Limited Company

PRIVATE LIMITED COMPANY

Private Limited Company is the most preferred business structure for Start-ups and growing companies as it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent.

A Private Limited company is a limited liability company with a minimum of two and a maximum of 200 members and offers legal protection to its shareholders. Although Private limited company has limited liability and a separate legal entity and at the same time it has all the advantages of partnership namely flexibility, greater capital combination of different and diversified abilities, etc.

 

 

Why Private Company?

NO MINIMUM CAPITAL There is no minimum paid up capital required for starting a Private Limited Company.
EASE OF FORMATION A Private Limited Company can be easily registered and is easy to manage and run.
SEPARATE LEGAL ENTITY The biggest advantage of a Private Limited Company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations which ultimately limits the liability of members.
PERPETUAL SUCCESSION In case of death of the owner or transfer of shares, your business won’t get affected. There will be no effect on firm’s continuance.
LIMITED LIABILITY The greatest benefit of Private Limited Company is limited liability. If any liability arise then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Stakeholders are not liable for corporate debts and liabilities.
GREATER FLEXIBILITY A Private Limited Company is required to perform lesser legal formalities as compared to a Public Limited Company. It enjoys special exemptions and privileges under the company law. Therefore, in Private Limited Company, less number of compliance is required.
SECRECY A Private Limited Company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.
INVESTMENT Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability. In fact, venture capitalists and private equity funds prefer to invest in this structure.
TRANSPARENCEY Private Limited Company enjoys enhanced transparency thus abo win the trust of general public.

 

Company Registration Process



Documents required for Private Limited Company Incorporation


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