Private Limted Company

MRP: ₹9,999/-

Fufafin Price: ₹7,999/-

You Save ₹2,000/-

Complete Services within 7-15 Days

Company Registration of 1 lakh share capital.

⦿ DIN & DSC Excluded.

⦿ Govt. Fees Excluded.


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What is a Private Limited Company?

A Private Limited Company in India is handled under the Ministry of Corporate Affairs (MCA). For a company to report in India, at least two people must act as directors and shareholders. To note a Private Limited Company in India, PAN Card, Address Proof, and Bank details of the Director are required along with the Address Proof of Registered Office.

A private company is defined under Section 2 (68) of the Companies Act, 2013 as a business with a minimum paid-up share capital that may be set and that, by its articles,

● Restricts the ability to transfer the company’s stock.
● Except in a one-person corporation, it has a maximum of two hundred members.
● Any encouragement to the public to subscribe to a company’s securities is prohibited.

It is highly recommended to get Private Limited Company Registration. This type of business provides limited liability to shareholders with specific restrictions placed on ownership. Private Limited Company is the most popular type of business entity in India. More than 20 lakh companies have been registered in India since October 2020, and 12 lakh companies are classified as active. All the businesses registered in India are governed by MCA (Ministry of Corporate Affairs) under the Companies Act, 2013.

Advantages of Private Limited Company

Before beginning the business, it is necessary to decide the company has been chosen based on the objectives, business structure, and operations of the company. Private Limited Company is a discreetly held entity preferred by most entrepreneurs. Up to 50 shareholders in PLC registered in India can limit the owner’s liability and prohibit the shares from being publicly traded.

Limited Liability: When businesses see an invisible financial crisis and are on the verge of closure, the shareholders never risk losing their assets. Instead, the amount invested is lost when starting the business, and the director’s assets are protected.

  • Access to Funding: Private limited companies accommodate equity funding easily as there is a difference between shareholders and directors. Experience capitalists and private equity funds are likely to invest in any other structure.
  • Ability to Borrow: Private limited companies in India have the privilege of borrowing more money than LLPs as there are more options for taking loans. Banks assist private limited companies in financial assistance compared to OPCs and LLPs in the form of debenture issues, and convertible debentures are always available. Therefore, banks and financial institutions better welcome private limited companies than partnership entities.
  • More Credibility: A Private Limited Company must provide a lot of information about the structure, operations, and financials to the Registrar of Companies. This data ends up in the general domain. Hence sellers, lenders, employees can get information relevant to the company, such as authorized capital, name of directors, registered office, etc. This information makes businesses more reliable than the entities that present this information.
  • Easy Exit: Private limited companies in India may be sold or transferred either partly or wholly to other persons or entities without interruption in the present business.
  • International Expansion: The business is developing products globally and aims to expand operations worldwide. In that case, it is necessary to get investment and collaboration with foreign establishments. However, one of the advantages of private limited companies in India is a 100% automatic route, which means there is no government approval for foreign companies to invest in India. So partnership, LLP needs support from Govt. 
  • Range of Opportunities: Successful entrepreneurs are always on the watch for chances wherever possible. Private limited companies have the scope to utilize the possibilities as the business grows over time, while the sole props [reaterships and partnerships] remain tied.
  • Better Administration: Since Private Limited companies are regulated by the Companies Act 2013 and must follow all the stringent procedures, disclosing norms and various legal requirements, they are more organized in creating value.

A Private Limited Company offers several advantages compared to other entities; It is always best to get registered by experts to avoid discrepancies.

Documents Required

● Pan Card Mandatory for Indian Directors
● Passport (foreign nationals only) Mandatory for foreign directors or shareholders
● Aadhar Card Mandatory for Indian directors.

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Components of Private Limited Company:

The minimum necessity to register a Private Limited Company in India is two members, and a maximum is 200, required as per the Companies Act, 2013.

Limited Liability for Partners: The drawback of each member of the shareholders is limited. If the Company is facing loss under any possibilities, the shareholder is liable to sell the Company’s assets. His property is not in danger here.

Perpetual Succession: Once registered, a private limited company continues to be subject to the law in the event of the death or defaulting of any of the members. The life of the Company exists forever.

Index of Members: A private limited company has ownership over a public company as they are not required to maintain an index of members. In contrast, public limited companies must maintain an index of members.

Number of Directors: Only two directors are required for a private limited company in India. Therefore, with the existence of 2 directors, a Private Limited Company can commence its operations.

Memorandum of Association: The Memorandum of Association conveys the charter of the Company. MOA is the legal document prepared during the company formation and registration process. The MOA represents the relationship between the shareholders and clarifies the purposes for which the Company is formed.

Articles of Association: The AOA lays down the rules and regulations for the Company’s internal management. The duties, powers, and powers of directing the Company are specified in the AOA. An Articles of Association is a subsidiary of the Memorandum of Association.