Private Limited Company is one of the most common types of company registration in India, It is the most widespread and most popular type of corporate legal entity. The registration of Private Limited Company is governed by Companies Act, 2013.
The word “Private Limited” must be added at the end of its name by a Private Limited Company.
In Indian, more than 1.5 Million company registration has been done by the MCA. In general, Private Limited Company has more credibility than LLP or OPC
These features make it most recommended the type of business entity for many small and medium sized business. Generally, new Start-ups and growing businesses choose to register a company in India.
|Minimum: 2||Minimum: 2|
|Maximum: 15||Maximum: 200|
As per the requirement under Companies Act 2013, every Company shall have at least one Director whose stay in India is not less than 182 days for a total period in the previous calendar year.
For Company registration, you have multiple choice thought business registration as the private limited company requires no minimum paid up capital. However, in general, entrepreneur keeps Rs. 1 lakh rupees or such higher paid up Capital as may be prescribed.
The company can be registered as OPC or Limited Liability Partnership or Private limited. Private limited has been always considered as No. 1 choice by the startup founders. Here are the benefits of Private limited registration.
Under Companies Act 2013, a private Limited Company is a distinct Legal entity. Hence, the members are not personally liable for companies debts.Thus, it can open Bank account in its own name, sue another person etc.
Business needs to borrow money. In a Private Limited Company, only the amount invested will be lost and the personal property of directors won't be attached in case of liability arises. Limited Liabilities are given to shareholders
It simply means un interrupted existence I.e. it is unaffected by death or casual vacancy or other departure of any member etc. the entity continues to exist forever.
Only by means of transferring shares the ownership of the company gets treasured easily. The consent of other shareholders may be required to have such effect.
Govt also provides certain Tax Benefits and tax exemptions to companies, which are not available in general course. Such incentives are based on their area of operations.
|Description||Private Company||Public Company|
|Share Capital||Minimum: Rs. 100000 Thus now it can be floated with any amount of share capital||Minimum: Rs.500000|
Maximum: No Limit
|Name||Last word “Private Limited”||Last word “Public Limited”|
|Stock Exchange||No Listing||For public offer, it is to be listed on stock Exchange|
|No. of Director||Minimum: 2
|Ease of Investment||Easy to accommodate||Difficult a compared to Private Company|
|Recommended for||Start-up and Growing Company||Big Company engaged in professional services|
|Protection Limited Liability||Yes||Yes|
|Venture Capital Fund||Yes||Yes|