Benefits of Private Limited Company Registration
1. Limited Liability
- The biggest advantage of a Pvt Ltd Company Registration is Limited Liability. Just in case your business encounters with huge financial crisis, at that time you’re not at all liable to pay the complete debts by yourself. Having a limited liability enables shareholders and members not to take the complete burden of debts and the assets and finances of the shareholders remain safe.
- The shareholders requires to contribute only the nominal value of their shares, in the extreme cases of a financial bankruptcy of the company. Having this security allows the company to provide high-value services which might otherwise lead to liability claims.
2. Increases the Value of Your Business
- Registering as a Pvt Ltd Company generates a professional image in the minds of customers, vendors as well as investors which helps increasing the Business Value Overall.
- You have better chance of doing business with larger companies only if you register your Startup company as a Pvt. Ltd. These big companies looks at you as someone who’s into doing some serious business and not just another startup. Pvt Ltd company registration helps generating trust in you as a startup and will get you more business opportunities with these companies which otherwise might not be available.
- Registering your company as a Private Limited will make your brand appear as Unique and also eliminates duplication in the market.
3. Will Get Your More Funding Options
- A Private Limited Company Registration is recommended for any business that is considering FDI or Employee Stock Options or Equity funding or Venture Capital funding.
- You’ll require all kinds of funding options which are there, available in the market to grow your startup in all aspects of a business. Therefore, Funding is a extemely important factor for establishing, maintaining and growing your business or a startup.
- That’s why, a Private Limited Company is the ideal legal structure for businesses who’re looking to expand.
4. Saves You More Tax
- Private Limited Company Registration helps you to save a considerable amount on the taxes.
- The Pvt Ltd company may choose to pay dividends to its shareholders, other than paying regular salary.
- Compared to the salary the dividends have lesser tax deductions and thus, holds the higher value for the shareholders.
5. Helps you Build a Great Team
- In today’s competitive market, to hire or to retain your best performing employees, you should offer benefits like stock ownership or ESOPs.
- Employee Stock Ownerships or ESOPs are only possible when your company is registered as Private Limited.
- Remember, Big Businesses are Great because of their Great Teams.
6. Makes Your Business Appear More Credible
- Private Limited Company can be registered quickly as compared to an LLP registration or any other form of Company Registration.
- Being a Pvt. Ltd. Company helps you Improve your Business Credibility. Private Limited Companies appears more Reliable and Trustworthy to other businesses, financial institutions, vendors, and potential clients.
- This is why a Startup should ideally truly consider registering themselves as Private Limited Company over any other form of company registration.
7. Gives you better Management & Ownership Features
- A Private Limited Company provides you more flexibility when it comes to transferring or sharing of ownership.
- The ownership of a Private Limited Company is determined by its shareholders and a Private Limited Company can have upto 200 shareholders.
- There’s a clear distinction in a Private Limited Company between the owners of share and the management as the shareholders do not directly participate in the management of the company,
- Hence, a Private Limited Company is much more benefitial when it comes to ownership and management features.
Private Limited Company Registration is Most Preferred in India Because:
The Concept of PRIVATE LIMITED in INDIA been there since 1956. They are more famous in a country like India and hence are preferred more. Private limited companies have been in existence for longer and enjoy widespread recognition in India and the world.
FAQs for Private Limited Company Registration
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How many persons require to register a Private Limited Company?
Minimum 2 Persons (aged above 21 years) required.
Can I register a Private Limited Company at Residential Address?
Yes, you can register a Private Limited Company at RESIDENTIAL ADDRESS.
Do we need to visit any office personally for Company Registration?
The process for Company Registration is Online in INDIA so no need to visit personally in any office.
What is Paid Up Capital?
Paid up capital is an amount which shareholders are required to deposit in the bank account of the Company after Company Registration.
Whether GST Registration is mandatory?
It depends upon Turnover and Industry/Type of your Company, Please call us for more information.
Which documents you require for Private Limited Company Registration in INDIA?
- Passport Size Photo
- Copy of Pan Card – Self Attested
- Copy of AdhaarCard – Self Attested
- Copy of Latest Electricity Bill / Telephone Bill / Bank Statement / Mobile Bill – Anyone: Self Attested
- For Office Proof – Copy of Latest Electricity Bill / Telephone Bill / Gas Bill – Anyone: Self Attested
What are the immediate compliances after company registration?
Every Company is required to complete the following formalities within 30 days from the Date of Registration of the Company:-
• The holding of First Board Meeting
• The opening of Bank Account
• Deposit of Share Capital by the Shareholders
• The issue of Share Certificates to the Shareholders
• Appointment of Statutory Auditor
• Other Compliance’s as may be required