PVT LTD COMPANY
Rs9,999.00
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ADVANTAGES & BENEFITS

Limited Liability Protection

Many times startups need to borrow money and take things on credit. In case of normal Partnerships, Partners personal savings and property would be at risk incase business is not able to repay its loans. In a private limited company, only investment in business is lost, personal assets of the directors are safe.

Easy to raise funds and loans

Pvt. Ltd. company enjoys wide options to raise funds through bank loans, Angel Investors, Venture Capitalists, in comparison to LLPs and OPCs.

Favorite Business structure for Investors

Investors love to invest in Private Limited companies as it is well structured and less strings attached. Most important it is very easy to exit from a private limited company.

Easy to attract Employees

For startups putting together a team and keeping them for long time is a challenge, due to confidence attached to private limited structure, it is easy to hire people as well as motivate them with corporate designations and stock options.

Easy to Sell

Private Ltd. is easy to sell, very less documentation and cost is involved in selling a Pvt. Ltd. company.

Better image and credibility in Market

Private limited company is popular and well known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Private Limited Company instead of proprietorship or normal partnerships.

DOCUMENTS REQUIRED FOR PVT LTD COMPANY

ID Proof

Scanned copy of PAN Card of all directors and Voter ID/ Passport/ Driving License

Address Proof

Latest Bank statement/ Utility bill in the name of director which should not be older than two months

Photo

Latest passport size photograph

Registered Office Proof

Notarized Rent agreement (in case of rented property)/ Registry Proof or House Tax Receipt (in case of owned property)

WHAT DO YOU GET

DSC

Digital signature for two directors to digitally sign the documents

Company PAN

PAN number of the company to open a bank account

Company TAN

TAN number of the company

Memorandum of Association

Defines the rules and objective of the business

Incorporation Certificate

Certificate of incorporation bearing company’s registration number and details

Articles of Association

Defines the rules and objective of the business

QUESTIONS & ANSWERS

Why is the Private Limited Company the best option for start-ups?

In order to execute the idea into a long-term business, choosing the right form of business is important. For start-ups, Private Limited Company is the best option for the following reasons:

  • Limited legal compliances
  • No minimum capital contribution
  • Need only 2 directors and shareholders (both can be the same person)
  • Funding can be raised
  • Limited liability of the members

What is the limit for Directors in a Private Limited Company?

A minimum of 2 Directors are required for incorporation of Pvt Ltd Company, one of the said Director shall be a resident in India, i.e. should be in India for a period of 182 days or more in the previous financial year. However, a private company can have a maximum of 15 Directors.

Who can become a director in a Private Limited Company?

Any individual or organisation or even an NRI/foreign nationals can become a director in an Indian Private Limited Company. Here are the conditions to become a director in an Indian private company:

  • Director must be a natural person
  • He must be over the age of 18 years
  • He requires a Director Identification Number (DIN)

What are the mandatory compliances for a Private Limited Company?

The common mandatory compliances are:

  • Appointment of auditor
  • Statutory audit of accounts
  • Filing of annual return
  • Filing of financial statements
  • Holding Annual General Meeting (AGM)
  • Prepare directors’ report

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