Private Limited Company Registration Starting & registering is business is an important step in an entrepreneurs journey. Choosing the right form of business is equally important. Here weâ€™ll guide you on Private limited company registration - what is an Private limited, why should you go for an Private limited, the registration process, documentation and requirements.
What exactly is a Private limited company? A private limited company is a type of company which has shares held by directors or founders. There shares cannot be sold in a open market as in case of Public limited company. The directors or share holders in a pvt ltd company have limited liability. In simpler terms, you need 2 or more than 2 directors to start a private limited company. Also, the directors are not liable to pay for the company debts or creditors from their personal assets. This is a big advantage over normal partnership firm where partnersâ€™ personal assets like home & car can sold to repay firm debts. Limited liability advantage is also provided by LLP. But the key reason why entrepreneurs choose private limited is because VCs / Investors prefer Pvt limited over LLPs
Why should you go for an Private Limited ? There are multiple reasons to choose private limited company:
Preferred by banks, VCs & investors. Easy to allocate and re-distribute shares to investors or other directors. Limits your liability. All of the risks of the business are spread out. Easy to register, manage & run. Easy to dissolve or wind-up.
Concerns related to Private Limited Company? ď‚› Pvt.
Ltd requires few more ROC compliances translating into a additional cost of 5K to 10K/ annum. ď‚› Minimum capital required is Rs. 100,000 Still entrepreneurs prefer private limited for the ease in share transfer and potential for future growth.
Private Limited Company Registration Process?
First of all the partners have to apply for Digital signature and DPIN . After that, you have to register for name approval. Name for the company should be unique otherwise the application would be rejected. After that you have to file for subscription statement and incorporation document. Apply for PAN and TAN At the end you have to prepare a Private limited agreement and file with MCA
It typically takes 15- 25 days to form an Private limited.
Documents Required for Private Limited Company Registration. You will need basic set of documents to apply for LLP. This includes PAN Card copy of Partners Copy of Aadhaar Card or Voter identity card Passport size photograph of partners Property papers copy (If owned property) Rent agreement copy & Landlord NOC(If rented property) Electricity/ water bill of business place
Requirements for Private Limited Company Registration Minimum
2 Directors Minimum Capital Requirement of Rs. 100,000 At least one Indian Resident as Designated Director DPIN for all Partners
How to register your Private Limited Company using LegalRaasta? We at LegalRaasta have helped over thousand companies in Private limited registration. To get your Private limited done from us, you can
Go to our website www.legalraasta.com and select LLP registration. Fill our online questionnaire. Select your package. You can choose for additional services like trademark and salestax registration and pay accordingly. We will take care of the rest.
Hope this was helpful. Thanks