What is a Private Limited Company
A company is union of people joint to gatherer for a common business goal and use the common pool of resource to achieve the common goal. Private Limited is suitable for small scale start-up. This provides a benefit of limited liability. The type of limited company restricts the liability of the share holders to the value of share they hold.
Why to choose a Private Limited Company:
As being the most oldest type of the Business entity, the Private Limited Company has got the plenty of the thing which is called as recompense. But the foremost reason for opting a private limited company is that, it has the character of Limited Liability. That is to say, the share holder’s liability is limited to the value of the share they hold.
Documents that are needed for Pvt. Ltd. Registration
1. Address Proof of the Directors
2. ID Proof of the Directors
3. PAN Card of the Directors
4. Photograph of the Directors
5. Rental Deed for the Company
6. Rented E.B Bill of the premises
What are the Minimum Requirement for registering a Private Limited Company
How to Register a Private Limited Company (procedure)
- Name Approval of the Company by Registrar of Companies (ROC)
- Obtain class -2 Digital Signature
- Apply of Director Identification Number (DIN)
- Filing of Memorandum of Association and Article of Association
- Issuance of Certificate of Incorporation
- Obtain a PAN Card for the Company
Private Limited Company is suitable for whom
For the following people, Private Limited company is perfectly suitable.
- If you who wants to build a great empire
- If you want to attract investment
- If you want to really limit the risk to personal asset
- If you want to build credibility among customers
- If you want to take your business at International level.
Advantages of being a Private Limited Company
- It Limits the Risk of the personal property of the share holders and Directors
- Furthermore it’s a legal entity, so, it can hold property in its own name and can even sue and can also be sued in its own name.
- One more important advantage of a Private Limited Company is, Trustworthiness. The term “Pvt. Ltd.” but itself gives a better status.
- The Private limited Company can stands long continuously which is called as “perpetual succession”. That is to say, the ‘death’ of the director will not make any effect on the existence of the company.
- If you want to attracts investors for your business, Private Limited would be the best choice. In specific, to fetch investment its possible only if it’s a Private limited Company
Taxation and Private Limited Company
Private Limited Company in India is considered a tax resident; it is therefore eligible for tax under Income Tax Act, 1961. Tax rate of 30% on the total income.
Apart from that the other business indirect taxations like GST and other business specific taxations will also be applicable in general.
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