Incorporating a Private Limited Company is like giving birth to a child, as it requires taking the utmost care on time. A Private Limited Company is the most preferred and common type of entity in India. Two persons come together to incorporate a Private Limited Company to conduct lawful business transactions with limited liability. There are various exemptions as compared to a Public Limited Company.
A Private Limited Company is incorporated with the motto of raising funds. In this globalized world, a Private Limited Company grows faster as 100% FDI (Foreign Direct Investment) is allowed without any approval. In a Private Limited Company, the liability is limited and extends only up to the share capital or guarantee given by its promoters. Most start-ups and growing companies prefer the Private Limited structure as it allows easy capital raising, offers 100% FDI, limits the liability of directors and shareholders, and provides the option of employee stock ownership. If you register your Private Limited Company, you can avail benefits under the Start-Up India initiative by the Government of India.
If you want to register your Private Limited Company, VS IPR & LEGAL ADVISORS will help you with company formation and all compliance requirements after registration.
Minimum Member
Maximum Member
Minimum Director
Maximum Director
Note it can have more Directors only after passing Special Resolution. For incorporation of the company, at least one director must be an Indian resident.
Private A limited Company is an artificial person created by law and it is separated by law from its owner.
The liability of the shareholder is limited up to capital contribution in business in his name and the personal Asset does not get affected by it unlike Sole proprietor or Partnership Firm.
Compliance Requirement as compared to the Public Company is minimum. As a Private Company has got much exemption under the Companies Act, 2013.
Death and the insolvency of any of the members do not affect the continuity of the company. Thus the life of its members does not affect the company.
There is no bar on Private limited Company on its Turnover and share capital as compared to the One Person Company.
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