Private Limited Company

A private limited company is a voluntary & independent involvement of not less than two and not more than fifty members, whose liability is limited, the transfer of shares is limited to its members and is not allowed to invite the general public to subscribe to its debentures or shares.

A Private Limited Company is the most popular form of business entity, which is used for by many businessmen in India. As per the new of Companies Incorporation rules.

  • Private company can now be incorporated within 2-3 days
  • There is no requirement of minimum paid up Share Capital
  • Incorporation Cost has been reduced

Private Limited Company as per Companies act, 2013

Section 2 Sub section (68) defines the Private Company. The “private company” means a company having a minimum paid-up share capital of one lakh rupees (Not Applicable Now) or such higher paid-up share capital as may be prescribed, and which by its articles,—

(i) restricts the right to transfer its shares;

(ii) limits the number of its members to two hundred:

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:

Provided further that—

(A) persons who are in the employment of the company; and

(B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased,

Features of Private Limited Company

  • Cannot Transfer Shares to outsiders
  • Minimum Two Directors
  • Minimum Two shareholders and Maximum 200 (Two Hundred) shareholders.
  • Minimum Paid Up Capital Not Applicable
  • Less Compliances
  • Easy to run business
  • Option available to expand

How Easyservicing help you to Incorporate Private Limited Company

We at Easyservicing provide private limited company registration and compliances services in India, which help small and medium sized entrepreneurs to start a private company and helping customers in selecting the best legal entity in India

We provide online company registration services at affordable price, which is very fast and easy, to our global clients in India & across the globe, which meet client's requirements and expectations completely.

Raise Request
Provide with Relevant Documents
Within 10-15 Working Days
Your Private Company is Registered

Advantages:

  • A company legal status.
  • Continuity of existence
  • Limited liability
  • Less legal restrictions
  • Separate Legal Entity
  • Easy Borrowing options available
  • Company exclusive rights to the use of the company name
  • A company's right to enter with confidence into the competitive business using its corporate identity.

Disadvantage

  • Restricted Access to Capital Markets
  • They cannot trade their shares on a stock exchange
  • Difficult to attract outside investors to buy the shares.
  • Increased Legal Compliance than sole proprietorship and partnerships
  • Compliances with Companies Act, 2013 and Rules
  • Higher Costs than sole proprietorship and partnerships
  • Limited Personal Control (Controlled by all Share Holders)

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