About Private limited company Registration

Private Limited Company registration is a favoured form to begin a business in India. It is common for entrepreneurs to establish their start-up as a private limited company since the term refers to a company owned by a small number of people. As a result of this structure, company owners are only liable for the percentage of the shares they own. Thus, each member’s liability is limited, allowing them to sell their shares to raise capital if necessary. It’s for this reason that young entrepreneurs prefer to register their businesses as limited companies – limited liability offers a certain level of security within the volatile startup world.

Advantages of a Private Limited Company

Greater control of shares

One of the biggest reasons to register a private limited company is that other shareowners must first offer to sell their shares to you, before providing the same to third parties. This provides the company with greater control over its shares and the people who can drive managerial decisions.

Easy to Raise Funding

Due to its equity structure, all investors invest in a Private Limited Company. Generally, the investment is completed through either equity shares or preferred stock in the company. Legal Salah can facilitate you in becoming an Investor ready.

Independent existence

A Private Limited company has ‘perpetual succession, which is continued or uninterrupted existence until it is legally dissolved. Upon registering your business as a private limited company, it evolves as a legal entity with its own PAN and TAN.

Limited Liability

The limited liability structure of a private limited company allows shareholders to walk away from an unfortunate event without losing their assets. In India, this is perhaps one of the most important reasons for registering a private limited company.

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