Benefits Of Private Limited Company Registration In India​

Starting a private limited company offers many advantages such as:

  • Limited Liability

The responsibility of the members of a private limited company is restricted to their share only as the private limited company is a separate legal entity.

  • Separate Legal Entity

A private limited company is a separate legal entity that possesses all the rights to sue or to be sued. It acts as an artificial person who can buy a property in its own name.

  • Credit Availability

A private limited company can obtain funds from the debentures as well as the stockholders. Registered Private Limited Company is considered a corporate entity that attracts different angel investors and venture capitalists that helps them to expand and raise their funds for the growth of their business and company.

  • Perform Internationally

The private limited companies support Foreign Direct Investment, in which another type of firm requires appropriate licensing and approval from the administration for foreign investments.

  • Perpetual Existence

A private company has a lifelong existence. Private limited companies are considered separate legal entities and are separate from the existence of their owners. It means they cannot be dissolved or end because of the death, retirement or insanity of any of their members/directors/shareholders.

  • Enhanced Value In Market

A registered private limited company is considered more trustworthy than a non-registered one. Information regarding the Registration of a private limited company can easily be obtained from the website of the Ministry of Corporate Affairs. Vendors, suppliers and investors trust them over the other business structures. As a result, it enhances the brand value of the company amongst the customers and other investors and suppliers.

  • Ease In Transfer Of Ownership

It is quite easy to transfer equity to new members and issue fresh shares in a private company.

Basic Requirements Of Online Company Registration

There are a few requirements to be known before initiating a Private Limited Company in India:

  • The private limited company must have a unique name which should not be the same as any other registered company and trademark.
  • It is mandatory for a private limited company to have a minimum of two directors.
  • As well as, it is necessary to keep in mind that the private limited company should have a minimum of two shareholders.
  • All directors & members of a private limited company should have a digital signature certificate which will be used to register a private limited company.
  • There is no minimum capital required for initiating a private limited company.
  • The process of online company registration is quite simple; make sure that you have a unique name for your c