What is Private Limited Company Registration?

What is a Private Limited Company Registration?

Before you select any business entity, it is important to identify which business form is best suited to your needs and resources. Experts say that Private Limited The company is the best business organization for every start-up. If we believe the statistics, about 93% of startups and entrepreneurs in India register they're the company as a Private Limited.

There are several reasons why startups are more inclined towards Pvt Ltd Company Registration than others. It offers many benefits such as ease of creation, limited liability, free transfer of shares, easy to raise funds and so on.

Is it Possible to register your Private Limited Company Online?

Yes, you can now easily apply for company registration online. All you need to do is visit the MCA's web portal, find the company inclusion option and start the process.

However, we still recommend that you seek professional help. This slows down the process as it provides you with the MOA (Memorandum of Association), AOA (Articles of Association) and many other documents needed at the time of company registration. It is really difficult to produce such a document on your own end, therefore, choosing a professional to invest in the company will be a wise option.

Why you should go to the Private Limited Company Registration?

Not just one or two, but there are several reasons why you should go for private limited company registration. Let's find out what they are:

Benefits of Private Limited Company Registration

Separate Legal Existence

Unlike a partnership firm or sole proprietorship, Private Limited Company is a legal entity independent of its members.

Limited Liability

Owners benefit if the liability is limited and not limited. For example, if the company suffers any loss, in this case, the personal property of the member of the company will not be affected. Therefore, you can take advantage of limited liability with private limited company registration.

Perpetual Existence

The Company maintains its existence even after the death of all directors or even leaving the shareholders' company.

Business Growth Is Supported

Such a business is preferred by most investors for investment. A company can deal with a venture capitalist, angel investor, or any financial institution to raise money. Therefore, businesses registered as a Private Limited Company can experience ideal growth.

Transferability is Easy

In the case of a private company, transferring ownership is easy. Only a few steps are required to change shareholding, directorship and nomination information.

Financing

A Private Limited Company has a better ability to borrow.