Documents Required For Incorporating a Private Limited Company A private limited company is the most sought after form of corporate legal Registration in India. The MCA (Ministry of corporate affairs) governs the company registration as per the companies act 2013 as well as the companies incorporation rules 2014. Also, for the company registration process, 2 directors and 2 shareholders are required. Remember, both shareholders and directors may or may not be the same person.
In India, private limited company registration is preferred over other forms of business Registration. It ensures limited liability and gives a separate legal entity to the business. Also, company formation results in clear ownership of the business entity which is defined by share capital of the company. The formation of a business entity is the first step in scaling your business and paves the way for outside funding while letting you attract top talent by providing stock options. But, you need to take into consideration mandatory audits with higher compliance that could be tough to maintain. Also, higher compliance will lend better credibility to your business than any other firm of incorporation of a company in the country.