Private Limited Company Registration

1. Limited Liability

Shareholders' personal assets are protected as liability is limited to their investment.

2. Credibility

Registered companies enjoy higher credibility with customers, vendors, and financial institutions.

3. Fund Raising: Easy to raise funds through:

• Venture Capital
• Angel Investors
• Bank Loans
• Private Equity

4. Tax Benefits:

• Lower tax rates compared to proprietorship
• Various deductions under Income Tax Act
• Easy GST registration and compliance

5. Ownership Transfer:

• Shares can be easily transferred
• Smooth succession planning
• No business interruption during ownership changes

6. Global Opportunities:

• Can expand internationally
• Import-export made easier
• Access to global markets

Requirements for Private Limited Company Registration

1. Directors:

• Minimum 2 directors required
• At least one director must be Indian resident
• Directors must have valid DIN
• No upper limit on number of directors

2. Shareholders:

• Minimum 2 shareholders
• Maximum 200 shareholders
• Can be individuals or corporate entities
• Non-residents can be shareholders

3. Registered Office:

• Must have registered office in India
• Can be owned or rented property
• Valid proof of address required

4. Capital Requirements:

• No minimum capital requirement
• Capital can be increased later
• Both equity and preference shares allowed