Before starting a business, there are many things that run through our mind and one question that comes to everyone’s mind is whether to incorporate a private limited company or not? What are the benefits of private limited companies? Are there any disadvantages of a private limited company?
Private Limited Company:
A Private limited company is formed lawfully with limited liability or legal protection for its shareholders but that places restrictions on its ownership.
A Private Limited Company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the number of shares respectively held by them. Shares of Private Limited Company cannot be publicly traded.
Private Limited Company is the simplest and a very popular form of Business Registration in India. It can be registered with a minimum of two people. Limited liability protection to shareholders, ability to raise equity funds, separate legal entity status make it the most recommended type of business entity for millions of small and medium-sized businesses that are family owned or professionally managed.
Minimum Requirement for Private Limited Company:
Private Limited Company Registration Process:
Registration of a Pvt Ltd company in India is complete an online process. Recently the MCA has replaced the earlier SPICe form with a new web form called SPICe+ (SPICe Plus). Hence, Incorporating a Private Limited Company is even easier now.
Now you can Incorporate a Private Limited Company, with a Single application for Name reservation, Incorporation, DIN allotment, Mandatory issue of PAN, TAN, EPFO, ESIC, Profession Tax (Maharashtra), and Opening of Bank Account.
SPICe+ is divided in two parts as follows:
1. Part A: Apply for the name reservation of the company in Part A of the form Spice+. it can be used for taking the name approval of the proposed Company and also for filing Company registration in one go.
2. Part B: In Part B of the Form Spice+, apply for the following services:
Advantages of Private Limited Company:
Here are some advantages to a Private Limited Company.
Disadvantages of a Private Limited Company:
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