Private Limited Registration
What is a Private Limited Company?
A private limited company is a company privately held for small businesses. This
type of business entity limits owner liability to their shareholdings, the number of
shareholders to 200, and restricts shareholders from publicly trading shares.
- MoA & AOA A copy of latest amended MoA and AoA of the company
- Col Certificate of Incorporation of company to be provided
- PAN Card Copy of PAN card of the company to be provided
What are the advantages for incorporation of Private Limited Company in India?
Limited risk to personal assets The shareholders of a private limited company have
limited liability. This means that as a shareholder you will be liable to pay for
companyâ€™s liability only to the extent of the contribution made by you.
Legal Entity A PLC has a separate legal entity different from you. This means that
the Company is responsible for the management of its assets and liabilities, debtors
and creditors. And you are not responsible for it. So, the creditors cannot proceed
against you to recover the money.
Raising Capital Even though registering a PLC comes with compliance requirements,
it is preferred by entrepreneurs as it helps them raise funds through equity, expand
and at the same time limits the liability.
Trustworthiness Companies in India are registered with the Registrar of
companies(ROC) under Companies Act 2013. Anyone can check the details of the company
through Ministry of Corporate Affairs (MCA). Also, details of all the directors are
provided while the formation of the company. Hence a PLC form of business structure
is trusted more.
Continue Existence A company has â€˜perpetual successionâ€™, that is continue or
uninterrupted existence until it is legally dissolved. A company, being a separate
legal person, is unaffected by the death or cessation of any member but continues to
be in existence irrespective of the changes in membership.