Private Limited Company
Private Limited Company is one of the most sophisticated forms of business entities in India. This is the most popular business vehicle that offers limited liability to its shareholders up to the face of their shares taken up or agreed to be taken up. We can start a Private Limited Company with 2 members out of which one shall be a resident of India. It is governed by the Companies Act, 2013 and rules made thereunder. So, there is no question for fraudulent activities. The ownership and management of the company is separated from each other.
Since it is the legal entity, outside fund can be raised easily. If any business idea needs funding and in future they are planning for the expanding and growing then Proprietorship or Partnership Firm cannot provide the right support.
Buzypro.com, legal service portal helps you to register a Private Limited Company
To be submitted by Directors
- Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
- Scanned copy of Voter's ID/Passport/Driver's License/Aadhar Card
- Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Scanned passport-sized photograph
- Specimen signature of Directors
Note: Any one of the directors must self-attest the documents
For the Registered Office
- Scanned copy of Notarised Rental Agreement
- Scanned copy of No-objection Certificate from property owner
- Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
- Scanned copy of Electricity or Property Tax Receipt
Note: Registered office need not be a commercial space.
Separate Legal Entity
The Private Limited Company has a distinct existence and an artificial person established under the Act and it is permitted to own a property along with or without incurring debts.
The liability of the members are limited only to their shares and Member’s personal assets are safe and liability of members is limited to the assets of a company so they are not paying from personal assets.
Continuity of business
Since it is incorporated under the provision of the Companies Act, 2013 and rules, any insanity or insolvency or death or change in member of the Company does not affect the continuity of the business of the Company.
Improve Business Credibility
Today customers, vendors and investors look for credibility in the businesses they deal with. If a business is started as a proprietorship or partnership firm, the business is not registered with the Ministry of Corporate Affairs and cannot be located in the online company databases. Hence, there is no credible proof of the business’ existence, making it hard to acquire reputed customers, or obtain credit from vendors.
In starting a private limited company, the information relating to the company, such as name of the company, date of incorporation, registered office address, status of the company, and other information are made available in a publicly searchable database. This feature makes it easy to authenticate the existence of the business, improving business credibility.
Rising of fund
Funding is essential for starting, maintaining, and growing a business. The Banking and Financial Organizations are more likely to prefer a Private Limited Company rather than a Proprietorship or Partnership. There is a higher scope of expansion because it is easy to raise capital from the financial institutes which add onto the advantage of the Private Limited Company.
Management and Control
All the partners of a firm are entitled to take part in the management. But in case of a company the board of directors who are elected by shareholders, they only can control and manage the business. Every shareholder doesn’t have to worry about the management of the company. Ease of operations, it is foremost advantage of forming the Private Limited Company because not every member is required to run the company.