Private Limited Company offers limited liability, flexibility, and growth potential.
Private Limited Company: The Foundation for Business Success
A Private Limited Company is one of the most popular business structures in India. It offers limited liability, employee attraction, dual roles for directors, and numerous other advantages. Startups and growing businesses often prefer this structure due to its ease of raising capital, ownership flexibility, and efficient management, making it a perfect choice for scaling enterprises.
What Will You Get?
Documents
Certificate of Incorporation
Memorandum of Association (MOA)
Articles of Association (AOA)
Digital Signature Certificate (DSC)
Director Identification Number (DIN)
Permanent Account Number (PAN)
Tax Deduction and Collection Account Number (TAN)
Provident Fund (PF) Registration
Employees' State Insurance Corporation (ESIC) Registration
Professional Tax Registration
Private Limited Company Registration: A Smart Choice for Entrepreneurs
Registering a Private Limited Company in India offers benefits like limited liability, legal recognition, and credibility. Favored by startups and growing businesses, it ensures flexible ownership and efficient management under the Companies Act 2013.
Sahyog simplifies the registration process, guiding you through obtaining essential documents like the Certificate of Incorporation, MOA, AOA, PAN, and TAN. With our expert support and transparent pricing, focus on scaling your business while we handle compliance and legalities. Trust Sahyog for seamless service and growth-oriented solutions!
Eligibility Criteria for Private Limited Company Registration
Requirement
Details
Directors
Minimum 2 directors (At least 1 Indian Resident)
Shareholders
Minimum 2 shareholders
Nationality of Directors
At least 1 director must be an Indian Resident
These directors and shareholders can either be the same or different individuals, with at least one director being an Indian Resident.
Documents Required for Registration
For All Directors/Shareholders:
Document Type
Required Document
Color Photograph
Required for all directors and shareholders
PAN Card
Must be provided by all directors and shareholders
Identity Proof
Choose any 1: Driving License, Voter ID, Aadhaar Card, Passport
Address Proof
Choose any 1: Bank Statement, Mobile Bill, Telephone Bill, Electricity Bill
Note:
Address proof should be in the name of the Applicant only.
Address proof should not be older than 1 Month.
For Registered Office:
Document Type
Required Document
Address Proof
Choose any 1: Telephone Bill, Electricity Bill, Mobile Bill
No Objection Certificate (NOC)
From the owner of the registered office address
Feature
Description
Limited Liability
Directors and shareholders' liability is limited. In case of insolvency, only the company's assets are used to clear its debts. Directors and shareholders have no personal liabilities.
Legal Entity
A private limited company is a separate legal entity. It can own property, enter into contracts, and be sued or sue in its own name. It instills confidence, particularly among larger organizations.
Easy Transferability
Transferring ownership is easy. To sell the business, only the shareholding needs to be transferred to the purchaser, facilitating a smooth change in management and ownership. This process saves time, money, and stamp duty.
Advantages of Private Limited Company Registration
Advantage
Description
Limited Liability
Liability of directors and shareholders is limited. Personal assets are not at risk in case of business failure.
Legal Entity
The company is a separate legal entity from its directors and shareholders, which provides credibility.
Easy Transferability
Shareholding can be easily transferred to facilitate smooth business transitions and ownership changes.
Raising Capital
Can raise funds through private placement of shares. However, Public Limited Companies can raise funds from the general public.
Taxation
Companies pay corporation tax on taxable profits, with more allowances and tax-deductible costs compared to sole traders or partnerships.
Borrowing Capacity
Companies have better access to financial assistance, including loans, shares, and debentures.
Dual Relationship
A person can be a shareholder, director, creditor, and employee of the company simultaneously. Example: Can receive remuneration as a director and dividend as a shareholder.
Role
Benefit/Income
Example
Director
Remuneration for managing company operations
A director receives a salary for their services.
Shareholder
Dividend from the company’s profits
A shareholder earns dividends on their shares.
Lessor
Lease rent for property provided to the company
A lessor collects rent from leasing premises.
Creditor
Interest on loans given to the company
A creditor earns interest on funds lent to the company.
Conclusion
Private Limited Company registration offers numerous advantages over other business structures. It provides limited liability, a legal entity status, easy transferability, and greater flexibility for raising capital, taxation, and borrowing. This structure is ideal for businesses aiming for expansion and growth, ensuring long-term success in a secure and structured way.
