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Features & Benefits of Private Limited Company

  • Limited Liability: One of the best features of Private Limited Company registration is that the liability of the person who invests money into the business (also known as shareholders) will be limited to the amount invested by them which also means that personal property of the promoters will remain safe and secure. This limited liability builds confidence of young entrepreneurs to fulfil their dream of having their own Company.

  • Separate Legal Entity: The separate legal entity feature gives your company to keep yourself and the company at length recognizing its own separate identity. In the eyes of law, Company and its Representatives are different personalities and Company can sue and be sued on its own name without the name of its shareholders or directors.

  • Perpetual Succession: This is what makes the registered company different from proprietorship or partnership firms where on the death of proprietor/ partners, the firm ceases to exist but in case of registered company, even the death of all directors/shareholders cannot stop the company to exist.

  • Easy exit and transferability: During the lifetime of the Company, if all or any of the shareholders wish to exit from the company, they can do so by simply transferring their shares. It is very easy to transfer shares to other person by way of share transfer arrangements. This gives shareholders the freedom to take informed decision whether to continue or not at any given point of time.

  • Owning Property: Company being a legal person can own property on its own name through its Legal Representative. The Property includes Intellectual Property (IPR) such as Trademark, Copyright, Patent and Design too. Company can also mortgage property the same way as a natural person to banks or any other financial institution.

  • Borrowing Capacity: Company being a Legal Person, when there comes a requirement to borrow capital or funds, it can be done through various modes of borrowing. Some of them could be Private Equity/ Angel Investor/ Venture Capitalist/ Short-term capital from Directors or their Relatives and Debts through Banks or FIIs.

  • Investment Ready: Any Investor who is looking to make investment generally prefers Private Limited Company than any other business structure. This is what makes a Private Limited Company investment ready. A Company can also get itself registered under DPIIT (Earlier DIPP) Scheme of Start-up India under Ministry of Commerce & Industry, Govt. of India to enjoy numerous benefits which the Indian Govt comes up time to time.

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Private Limited Company Registration

This is the most preferred form of business structure after LLP having limited liability of its Members. Private Limited Company can be incorporated with only two persons who can be Directors as well as Shareholders of the Company.  

  • Separate legal entity

  • Perpetual succession

  • Limited liability of members

  • Easy transferability of ownership

  • Easy Financial Assistance

Consult with an Expert

Overview of Private Limited Company Registration

A Private Limited Company (PLC) is one of the most popular types of business entities in India, offering limited liability to its shareholders and a flexible structure for managing the business. At Right Advisorz, we assist entrepreneurs in registering their Private Limited Company, ensuring full compliance with legal requirements and simplifying the process with expert guidance. Whether you are launching a startup or expanding your business, setting up a Private Limited Company offers numerous advantages, including access to funding, tax benefits, and enhanced credibility.

Required Documents for Private Limited Company Registration

To register a Private Limited Company, the following documents are needed:

  1. Identity Proof of Directors and Shareholders

    • PAN card (mandatory for Indian nationals)

    • Passport (for foreign nationals)

  2. Address Proof of Directors and Shareholders

    • Aadhaar card, Voter ID, or Driving License

  3. Residential Proof

    • Latest utility bills such as electricity, water, or gas (not older than 2 months)

  4. Proof of Registered Office Address

    • Rent Agreement (in case of rented premises)

    • No Objection Certificate (NOC) from the property owner

    • Utility bill of the registered office (not older than 2 months)

  5. Passport-size Photographs of all Directors and Shareholders

  6. Digital Signature Certificate (DSC)

    • A DSC is required for signing e-forms digitally during the company registration process. Our team will assist you in obtaining the DSC for all directors.

  7. Director Identification Number (DIN)

    • DIN is a unique identification number for directors, which can be obtained along with company registration.

Registration Form

Steps to Register a Private Limited Company

  • Obtain Digital Signature Certificates (DSC)

    • All proposed directors must have a valid DSC to sign the incorporation documents electronically.

  • Apply for Director Identification Number (DIN)

    • DIN can be applied along with the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form.

  • Name Reservation

    • The next step is to select a unique company name and apply for name reservation through the RUN (Reserve Unique Name) service. Our experts will help you verify the availability of your preferred company name.

  • Prepare Documents

    • The Memorandum of Association (MoA) and Articles of Association (AoA) must be drafted. MoA outlines the company’s objectives, while AoA defines the company’s internal rules.

  • Filing of Incorporation Form

    • Once the name is approved, the SPICe+ form, MoA, AoA, and other required documents are filed with the Registrar of Companies (ROC).

  • Certificate of Incorporation

    • Upon approval, the ROC issues a Certificate of Incorporation, along with the Company Identification Number (CIN), officially recognizing the existence of your company.

Why Choose a Private Limited Company?

  • Separate Legal Entity
    A Private Limited Company is a separate legal entity, distinct from its shareholders and directors. This provides the company with perpetual existence and the ability to own assets, enter contracts, and sue or be sued in its own name.

  • Tax Advantages
    Private Limited Companies benefit from lower tax rates on profits compared to other business structures. Additionally, they can access tax exemptions and deductions that may not be available to individual entrepreneurs or partnerships.

  • Access to Funding
    Raising capital for growth and expansion is easier for Private Limited Companies. They can issue shares to investors, attract venture capital, and secure loans from banks and financial institutions.

  • Enhanced Credibility
    Registering as a Private Limited Company adds credibility to your business, making it more attractive to investors, clients, and suppliers.

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