Private Limited Company

What is Private Limited Company?

Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. Start-ups and growing businesses choose to register a company in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership.


Advantages of Private Limited Company:

  • Limited Liability

    Businesses often need to borrow money. In structures such as General Partnership, partners are personally liable for all the debt raised. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In a private limited company, only the amount invested in starting the business would be Lost; the directors' personal property would be safe.

  • Investment Ready

    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 are unlikely to invest in any other structure. This is because LLPs would require them to become partners in the business, while an OPC can have only one shareholder. This feature also gives you the ability to hire top talent you may not be able to afford by merely paying a salary.

  • Easy Debt Access

    A private limited company has more options for taking on debt than LLPs. Not only are bank loans easy to obtain (relative to OPCs and LLPs), the option of issuing debentures and convertible debentures are always available to it.

Documents required for Company Registration:

TO BE SUBMITTED BY DIRECTORS & SHAREHOLDERS

  1. Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  2. Scanned copy of Voter's ID/Passport/Driver's License/Aadhar
  3. Scanned copy of Latest Bank Statement/Telephone or Mobile, Electricity or Gas Bill
  4. Scanned passport-sized photograph
  5. Specimen signature (blank document with signature [directors only])

FOR THE REGISTRED OFFICE

  1. Scanned copy of Latest Bank Statement/Telephone or Mobile, Electricity or Gas Bill
  2. Scanned copy of Notarized Rental Agreement in English
  3. Scanned copy of No-objection Certificate from property owner
  4. Scanned copy of Sale Deed/Property Deed in English (in case of owned property)