What is Private Limited Company?
Private limited company is a separate legal entity incorporated through a process of law. There are minimum two members are required to form private limited company. Number of members of private limited company can’t be more than 200. Minimum paid-up share capital of Rs. One Lakh is required to form private limited company.
Registration Requirement
Private limited company is registered with Registrar of Companies (ROC), Ministry of Corporate Affairs.
Advantages of Private Limited Company
- Limited liability: In case of financial distress, personal assets of shareholders will not be at risk. Their liability will be restricted up to the amount of capital committed by them.
- Separate legal entity: Company is a separate legal entity from its shareholders and directors. Shareholders can’t demand right over assets of the company.
- Easy Transfer of shares: Subject to the conditions of articles, it is easy to transfer shares of a company.
- Access to higher capital: Company has access to higher capital as total number of members can be increased up to 200.
- Perpetual existence: Company is a perpetual legal entity which means death of any member will not impact the existence of the company.
Private Limited Company Registration
Get a Private Limited Company Registered from anywhere in India directly from the comfort of your home or business place.