What Is a Private Limited Company?
A Private Limited Company is one of the most widely used business structures in India. It is held by a few individuals privately. It is a separate legal entity from its directors and shareholders, offering limited liability protection to its members.
It is the preferred structure for startups and growing businesses because it allows for easy external funding (VC/Angel Investment) and offers high credibility.
Advantages
Limited Liability
Shareholders are not personally liable for the company's debts. Their liability is limited only to the unpaid amount on their shares.
Easy Funding
Private Limited Companies can easily raise funds from venture capitalists, angel investors, and banks by issuing shares.
Perpetual Succession
The company continues to exist even if members die or leave. It has a separate legal existence.
Pre-requisites for Incorporation
- Name: Must be unique and not identical to existing trademarks.
- Directors: Minimum 2 Directors (at least one Indian resident). Must have DIN.
- Shareholders: Minimum 2 Shareholders (can be the same as directors).
- Capital: Decide Authorized and Paid-up Share Capital (No minimum requirement).
- Office: A registered office address in India.
Documents Required
To register your company, we require the following scanned documents:
For Directors & Shareholders
For Registered Office
Discuss your requirement
Tell us about your business and we will explain the process, documents and timelines.