What is Private Limited Company?
Starting a business in India is a simple process in recent days. Registration of a firm or company takes a certain period, according to its nature of the business, business type, and other allied services. Raj Softech Business Consultancy Services is the best platform where you can complete the registration and other legal procedures on time. An expert crew of professionals will provide necessary guidance for your business formation and other legal compliance's.
A private limited company is a legal entity privately owned by a group of shareholders. The owners or the shareholders of the private limited company bound by the shares they hold. A Private Limited Company is a business organization that needs some objectives before its formation. The major objectives of a private limited company the members of the company minimum 2 to a maximum of 200. Another objective is the shares of the company are not directly sell to the public. In India, it is one of the common forms of business entity, more than 90% of business units are forming under this Private Limited Company. A group of people can start a private limited company anywhere in India under the guidelines of the Indian Companies Act 2013. After the registration, the name of the company should carry the suffix as”Private Limited Company”.
A Private Limited Company is registered under the Indian Companies Act, 2013. The liability of the Private Limited Company is a limited one. Share transfer of ownership in Pvt Ltd follows the transfer deed and stamp duty.
Future Business Expansion is simple through investments raised from Venture Capitalist funding, and Fundraising, etc.
Vs SoleProprietorship
Anyone can easily start the Proprietorship form of business. This business unlike Pvt Ltd does not involve other's participation. An individual who carries the business can become the owner of the firm. Both the owner and his/her business identity are not different. The owner has to take all responsibilities and/or liability of the business. There is no proper regulation followed for Proprietorship firm registration.
Vs LLP
An LLP is a corporate body registered under the Limited Liability Partnetship Act, 2008. This form of business is similar to Pvt Ltd, but the owners are called Limited Liable Partners. This type of registration is suitable for particular forms of businesses where two or more persons are involved in the conventional partnership. Ownership Transfer is a risky process as compared to Pvt Ltd. Hence, the fund-raising is becoming a difficult part.
Vs Partnership Firm
A partnership is an agreement carried out by two or more partners. The partnership firm follows the regulation of the Indian Partnership Act of 1932. The fundraising process and business expansion are too limited. Partnership functions under unlimited liability which involves high risk of personal debt and loss.
Though it carries minimal compliance the business expansion requires all the legal compliance of a company.
Vs One Person Pvt Ltd
An Individual can easily start a One Person Company with the option of limited liability. OPC registration follows the norms of the Indian Companies Act, 2013. A single person can easily expand to a Private Limited Company under this business structure. Investment, Capital, and Fundraising are complex-free, but business expansion is a limited one. Minimal compliance and business conventions are preferable options.
Rajsoftech business consultancy offering the complex-free process for your fast and easy company registration anywhere in India. Though it involves multiple procedures and complicated compliances our expert team will help you to register and further proceedings of your company.
Directly check the company’s name availability on the portal of the Ministry of Corporate Affairs.
Reserve Unique Name ( RUN) form fill shows the name availability checking process.
Incorporate a company under the norms of MCA through Form SPICe (INC-32)
Applying for DIN ( Director Identification Number) DSC (Digital Signature Certificate) require for company registration.
Filing the MOA& AoA (Memorandum of Association & Article of Association) for company registration
Get the company’s incorporation certification directly from the Registrar of Companies (ROC).
Applying for PAN and TAN
Opening a current account on the name of the registered company.
Easy Fund Raising
A Private Limited Company can raise its funds through debt, applying for a loan, raising equity capital, finding an investor, and getting investment from venture capitalist.
Separate Legal Entity
A private limited company is free from its members and it is considered as a separate legal entity. Agreements, deeds, and contracts all are executed under the name of the company.
Protects Owner's Liability
A shareholder of a company liable for the company’s debt only up to his share value investment in the company. Other than the personal asset is a well secured one.
Easy Governance
A private limited company is a legal entity govern under the regulatory norms of the Indian Companies Act, 2008.
Increase Credibility
Both profits and losses are part of a business. Suppose, a financial difficulty can make the loss but it is limited until the money investment.
Increase Potential Growth
The potential growth of a private limited is a stable one. When the business expands it can convert to a public limited company by the addition of shareholders, raising funds, and add new investors.
Easy Transferrable
There is no restriction for the transfer of shares to the other shareholder. Just a transfer deed between Transferor and Transferee is enough.
Selling of Business
Selling a Private limited company is an easy option under the name of voluntary wind-up. The selling of business never involves personal assets.
Passport Size Photo of Two Directors
PAN Card of Two Directors
Copy of Electricity Bill where the office opens
Rental / Sale Deed
Aadhar Card of Two Directors
Address Proof (Bank Statement)
Rental Agreement
NOC
- Everyone in India can start a business unit under the category of Private Limited Company.
- Now, most of the startups prefer this business structure for its consistency and opportunity of easy company expansion.
- As a separate legal entity, the contracts, business agreements are executed only in the company name.
- The members of the company can change, but the company can stand as a stable one.
- The share investment and profit-sharing are pre-defined, which never creates business issues among the shareholders.
- Suppose the shareholder wants to opt-out of the company, it is possible without any legal complexity.
- The Private Limited Company model is suitable for all types of business including both product-based and service-related.
- Whether it is a Public Limited Company or a Sole proprietorship who wants to convert their firm under Private Limited is possible.
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DSC
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DIN
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e-MoA (INC-33)
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e-AoA (INC-34)
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PAN and TAN
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Docs Required
About SPICe (INC-32)
SPICe form or SPICe (INC-32) is a form directly issued from the Ministry of Corporate Affairs to reserve the name, incorporate a company, allotment of PAN and TAN in a single process. A new company, producer company, section 8 companies all should file this form before their company incorporation. To apply for SPICe (INC-32), we need,
- Address proof, Id proof of the directors and shareholders
- Memorandum of Association
- Articles of Association
- Affidavit and directors and shareholders declaration
- NOC from the partners or other associates relating to the company
Description | Private Limited Company | Proprietorship Company | Limited Liability Partnership | Partnership Firm | One Person Company |
|---|---|---|---|---|---|
Legal Act | The company should be registered under Companies Act 2013 | There is no legal constitution framed by our government. | The company should be registered under Limited Liability Partnership Act 2008 | The registration of this firm is optional, but it's necessary to get registered by State Government | The company should be registered under Companies Act 2013 |
Registration Requirement | Registration under the Act is mandatory to set up business as a Private Limited Company | Registration under the Act is mandatory to set up business as a Private Limited Company | Registration under the Act is mandatory to set up business as a Private Limited Company | Both registered and unregistered partnerships are legal, but registered entity is preferred | Registration under the Act is mandatory to set up business as a Private Limited Company |
Separate Legal Entity | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. |
Liability Protection | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. |
Statutory Audit | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. |
Number of Members | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Enter your text here... |
Ownership Transfer ability | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. |
Foreign Participation | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. |
Tax Rates | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. |
Statutory Compliances | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. |
Existence | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. | Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce posuere efficitur viverra. |
Current Account Opening
For the GST filings, the current account plays a major role because all the inflows and outflows will be received through some sources. If we have a good track to start to stand with the current account it gives more clarity and transparency for all the legal persons and the promoters. For the GST filings, the current account plays a major role because all the inflows and outflows will be received through some sources. If we have a good track to start to stand with the current account it gives more clarity and transparency for all the legal persons and the promoters.
For the GST filings, the current account plays a major role because all the inflows and outflows will be received through some sources. If we have a good track to start to stand with the current account it gives more clarity and transparency for all the legal persons and the promoters. For the GST filings, the current account plays a major role because all the inflows and outflows will be received through some sources. If we have a good track to start to stand with the current account it gives more clarity and transparency for all the legal persons and the promoters.
Frequently Asked Questions
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