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What is Private Limited Companies ?

Private Limited Company is most popular to start a business in India. 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. A Private Limited Company offers limited liability and legal protection to its shareholders. Shares of Private Limited Company cannot be publically traded. A private limited company can have a minimum of two members and a maximum of fifty members. A person can be both a director and shareholder in a Private Limited Company. Unlike working as a sole trader or being in a partnership a limited company is a legal entity in its own right. It has a different structure and more complex requirements such as different tax and legal obligations.

Procedure to Private Limited Companies
  • Select your Package
  • Make Online Payment
  • Obtaining Documents for Signature & Applying for Digital Signatures
  • Filing of web form SPICE+, MOA, AOA, PAN and TAN
  • Receive your Company Incorporation Certificate
Documents required for Private Limited Companies
  • PAN Card copy of the proposed Directors
  • Passport Size of Photograph of Directors.
  • Conveyance/ Lease deed/Rent Agreement
  • Electricity/ Water bill but any of them must be of the business place only
  • Bank A/c. statement of the bank account of the firm (for latest 2 months)
  • Partnership Deed ( for Partnership Firm)
  • Canceled cheque
  • Description of the products being exported
Benefits of Private Limited Companies
  • Trading as a limited company helps to portray a professional image and enhance your reputation.
  • Only two members and two directors are required to incorporate a private limited company. This gives many Entrepreneurs an opportunity to set up their own company.
  • Easy to allocate and redistribute shares to other directors/ people who have invested money in the company.
  • No minimum capital is required to form a Private Limited Company. A Private Limited Company can be registered with a mere sum of Rs. 10,000 as total Authorized Share capital.
  • In private Limited Company, 100% Foreign Direct Investment is allowed that means any foreign entity or foreign person can directly invest in a Private Limited Company.
  • The greatest benefit of private limited companies is its limited liability. The liability of the company is different as from its members of a company. In a private limited company, only investment in business is lost, personal assets of the directors are safe.
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