Private Limited Company

 

A Private Limited Company is a type of privately held small business entity, in which owner’s liability is limited to their shares, the company is limited to having 200 or fewer shareholders, and shares are prohibited from being publicly traded. A company becomes an independent legal structure when it incorporates. Private Limited Company Registration is more suitable for Startups looking for Funding and Long term Growth.

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Basic Plan Includes
• Digital Signature Token for 2
• DIN for 2 Directors
• AOA, MOA
• MCA fees for Incorporation
• Company Name Approval
• Incorporation Certificate
• Company PAN Card
• Company TAN/TDS Number
• Company Round Stamp
• Esic
• PF Number
• PT
• Hard Copy of Share Certificate
• Directors Round Stamp for 2
• Bank Account Documents
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Basic Package Includes = • Digital Signature Token for 2 • DIN for 2 Directors • AOA, MOA • MCA fees for Incorporation • Company Name Approval • Incorporation Certificate • Company PAN Card • Company TAN/TDS Number • Company Round Stamp • Hard Copy of Share Certificate • Esic • PF Number • PT • Directors Round Stamp for 2 • Bank Account Documents

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advantages

Limited
Liability

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Limited liability means the status of being legally responsible only to a limited amount for debts of a company. This means the personal assets of the owners are protected if an employee, a business partner or the company itself is sued for negligence. This is especially important for owners with significant amounts of personal assets that they do not want to risk..

Brand
Value

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Private limited company is popular and well known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Private Limited Company instead of proprietorship or normal partnerships..

Easy to
Raise Funds

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Owing to the corporate entity structure, it becomes feasible for startups and growing businesses to raise funding from angel investors, venture capitalists, etc..

Flexible
Management

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Investors love to invest in Private Limited companies as it is well structured and less strings attached. Most important it is very easy to exit from a private limited company..

Easy to
Sell

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Private Ltd. is easy to sell, very less documentation and cost is involved in selling a Pvt. Ltd. company..

Continuous
Existence

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The existence of Private Limited Company is separate from the existence of its owners. It will continue to exist even if the present directors and members cease to exist in the future..

limitations

Restricted Access
to Capital Markets

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Unlike Public Limited Companies, Private Limited Companies are legally restricted from issuing their shares through an initial public offering. As such, they cannot trade their shares on a stock exchange. With this restriction, private limited companies may find it difficult to attract outside investors to buy the shares.

Restriction on
Trade of Shares

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A shareholder of a private limited company typically must seek the approval of the company’s directors before selling or transferring his shares to a new owner, or offer them to existing shareholders.

Increased Legal
Compliance

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Since private limited companies have a separate legal identity from their owners, they must comply with more legal requirements than sole proprietorships and partnerships. For instance, private limited companies must submit annual financial accounts to the Companies House at the end of each financial year and report a number of changes, including appointment of a tax professional, to HM Revenue and Customs.

Higher Admin
Costs

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As a legal obligation, private limited companies must appoint at least one director, who also may be a shareholder. In many cases, they also hire a company secretary, and other professionals like accountants to ensure accurate reporting and avoid late filing penalties. Since this can increase the general and administrative expenses of a business, it costs more to set up and run a private limited company than it is to be a sole trader.

Limited Personal
Control

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Unlike in sole proprietorships, founders of a private limited company don’t have total control over the entity’s operations. When founders decide to privately issue shares to others, they invite more owners into the business. With reduced control, founders typically cannot make and execute important decisions without consulting with other shareholders.

FAQ's

For simple questions, simple way of answer.

How long does it take to set up a Private Limited Company?
Once all the documents are in order, it will take no longer than 15 days. However, the processing period is dependent on the workload of the registrar.
Who can be a Director/Shareholder of a Private Limited Company?
Any individual over the age of 18 years, having a valid PAN Card, can become a director in a company. Also, since there are no conditions for residency or citizenship, even NRIs and Foreign Nationals can quickly begin and operate a private limited company in India.
What documents do I require to complete the process of registration?
All directors are required to present identity and address proof, as well as a copy of the PAN Card (for Indian Nationals) and Passport (for foreign nationals). No-objection Certificate (NOC) must be submitted by the owner of the registered office premises for having the registered office in his/her premises and must present his/her identity proof and address proof.
Do I need to be physically present during the Company Registration ?
Company registration is a 100% online process, no need to present physically at our office or ministry of corporate affairs. We will send our personnel to your home or office for a doc. signature.
Can the director of a Private Limited Company also be a salaried person?
Yes, a salaried person can become the director in private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In many cases, the employers are quite comfortable with the fact that their employee is a director in another company
Can I use a residential address to register my Private Limited Company?
Yes, you can register a Private Limited Company at a RESIDENTIAL ADDRESS.
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