Setting a Private Limited Company is one of the highly advised to start a business in India. This type of company offers Limited Liability to its shareholders with certain restrictions placed on the ownership.

 Therefore, for an instance in a Limited Liability Partnership has partners, who own and manage the business. Whereas in Private Limited Company registration, directors may be different from that of shareholders.

Private Limited Company(PLC): Benefits or Advantages 

1. No Minimum Capital: A Private Limited Company can be registered with a mere sum of Rs. 10,000 as total Authorized Share capital and No minimum capital is required to incorporate a Private Limited Company.
2. Separate Legal Entity: A Private Limited Company is a separate legal identity in the court of the law, meaning assets and liabilities of the business are not the same as the assets and liabilities of the Directors. Both are counted as different.
3. Limited Liability: If the company undergoes financial distress because of whatsoever reasons, the personal assets of members will not be used to pay the debts of the Company as the liability of the person is limited.
4. Fund Raising: A Private Limited Company in India is the only form of business except for Public Limited Companies that can raise funds easily.
5.  Shares can be easily Transferred: Shares of a company limited by shares are transferable by a shareholder at any other person. The transfer is easy as compared to the transfer of an interest in a business run as a proprietary concern or a partnership.
6. Uninterrupted Existence: A Private Limited Company has ‘Perpetual Succession’, that is continued or uninterrupted existence until it is legally dissolved. 
7. FDI Allowed: In a Private Limited Company, 100% Foreign Direct Investment is allowed that means any foreign entity or foreign person can directly invest in a Private Limited Company.
8. Builds Credibility: The particulars of the company are available on a public database. This improves the credibility of the company as it makes it easy to authenticate the details.

How can we help you?

If you too are wondering to set up a Private Limited Company, the Online Legal India™ expert team can take care of the documentation process. We have a highly qualified CA/CS and 10+ years of experienced lawyers who would assist you to Register your Private Limited Company(PLC). We have budgeted services for those who are willing to venture into a company, business or any other kind of organization.