One of the most pertinent aspects to identify as a business owner is the type of company you want to establish. Most entrepreneurs prefer establishing their start-up as a private limited company, as the term refers to a company held by a select few people. Within this structure, company owners are only as liable as their percentage of shares had. As a result, the liability that’s held by each member is limited, ensuring that owners can sell their shares to raise capital if they require to do so. This is one of the reasons why young entrepreneurs prefer registering their business as a private limited company – the limited liability offers a certain level of security within the volatile world of start-ups.
Additionally, private limited companies are often quite attractive to potential investors who’d like to gain equity in the company they are investing in. As the shares can also be issued at a premium, the investment process is generally quite smooth. Finally, it is essential to note that if you plan to register a private limited company, you only need two company members to qualify for the same. Conversely, a total of 200 members can also register as owners of the same company. This is yet another reason why private limited companies in India are so popular. If you’re wondering how to register a private limited company, keep reading to find out everything you’ll need to know.
One of the biggest reasons to register a private limited company is that other shareowner must first offer to sell their shares to you, before providing the same to third parties. As a result, there is greater control over the shares and the people who can make managerial decisions on the company’s behalf.
All investors invest in Private Limited Company because of its Equity Structure. Generally, the investment is made through either equity shares or preference shares in the company. Our Startup India can help you in becoming an Investor ready.
A Private Limited company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. Once you register your business as a private limited company, it becomes a legal entity with its PAN and TAN. As a result, the company continues to exist even after the founders pass on.
A private limited company’s limited liability structure enables shareholders to walk away with their assets unscathed should an unfortunate event occur. This is perhaps one of the foremost reasons people choose to register a private limited company in India.
Publicly traded companies must disclose their financial information to the public, which means they are open to more scrutiny. However,this is not the case with private limited companies in India. Shareholders can enjoy greater transparency with regard to their financial earnings.
One of the biggest drawbacks of having a publicly-traded company is that with the number of shareholders increasing, the managerial process and operations tend to grow more complex.This is mainly because different shareholders bring their inputs regarding how the business should be run. As private limited companies are owned by fewer people, managing operations is much easier as people are more likely to reach a consensus easily.
Registering your business can feel like a daunting prospect due to the documents required and the legal processes that you must partake in. Our Startup India can help you register your business online in just a few simple steps.
Start-ups and private limited companies enjoy better tax breaks than larger companies that are registered differently such as 3 years tax holiday if recognized as startups under startup India, loss of initial years can be adjusted with a profit of company when the company turns into profit and Corporate tax is 25% +cess turnover up till 2 cr whereas in other entities its 30%. This can be a huge boon to entrepreneurs who want to save money wherever possible.
At Our Startup India, we offer a range of packages to suit your needs. Start by selecting the appropriate one, fill out the required forms, or simply speak to our experts online for assistance.
Company registration begins with obtaining digital signatures. Your Our Startup India manager will apply and generate a link to complete eKYC verification. The applicant is required to film a short video and verify OTP to authorize the application.
Our Startup India will help you identify three or four unique names, and get the same approved by filing the RUN form.
Once your name is approved, Our Startup India will help you fill out all vital documents, including the Incorporation Certificate. The Ministry of Corporate Affairs will issue your PAN and TAN.
Save upto-10% cost on this package
Save upto-20% cost on this package
Save upto-30% cost on this package
