Starting a business in India can be a very exciting venture. Be you a budding entrepreneur or an established businessman, the right choice of business entity is important. Among many available business entities, a Pvt Ltd company is preferred by most people for the following reasons: limited liability, separate legal identity, and ease of fundraising. In this blog, we’re going to guide you through everything you want to know about Pvt Ltd Company Registration Online with a focus on why it’s the best option for your business.
What Is a Private Limited Company?
A Private Limited Company, hereafter referred to as Pvt Ltd, refers to the structure of the company subject to the Companies Act 2013. This legal structure brings forth the distinction of its liability with the liabilities of shareholders that make it independent and separated. Secondly, the number of shareholders is capped at 200 and shares are not open to the general public.
Advantages of Joining a Pvt Ltd Company
Shareholders’ liability is only up to their share capital, hence protecting personal assets from business risks.
A Pvt Ltd company functions separately from its owners, hence it becomes easier to take contracts, acquire property, and sue in the name of a company.
A Pvt Ltd company enjoys more trustworthiness from the investors and the lenders; hence, it raises funds easily.
The existence of the company continues even if the owners or the directors change.
Some tax exemptions and relief are offered by Indian tax laws to Pvt Ltd companies.
The procedure of Online Pvt Ltd Company Registration of a Pvt Ltd Company had never been as easy as now when the Ministry of Corporate Affairs introduced such a smooth procedure. Here’s how to get your private company registered in India –
It’s essential to obtain the DSC of all directors and shareholders in which the DSC stands for Digital Signature Certificate is to authenticate electronic documents with signatures.
The DIN is to be submitted along with the SPICe+ form, which is an abbreviated proforma for incorporating an electronic company.