Startup registration i.e. how to register, which type legal entity it should be etc. are the questions, which are commonly asked by the entrepreneurs who want to start their own business. We at Legal Suvidha Providers will help you to get the answer to all these questions. So, first of all, one has to decide about the legal entity of the business. In India, we have 5 types of the legal entity i.e. Sole proprietorship, Partnership firm, Private Limited Company, LLP & OPC. For the ideal start of a startup business, it is advisable to have itself registered as a private limited company. It is the most preferred legal entity for growing startups in India due to its advantage of raising funds from Angel Investors or Venture capital firms. Clubbed with other features of a separate legal entity, Credibility in the market for expansion in the future, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent, etc. private limited company is helpful in long term perspective of your business. A Private Limited company is a limited liability company with a minimum of two and a maximum of 200 members and offers legal protection to its shareholders. Although Private limited company has limited liability and a separate legal entity and at the same time, it has all the advantages of partnership namely flexibility, a greater capital combination of different and diversified abilities, etc. We at Legal Suvidha Providers will give you full assistance in registering your dream project into a real one.
NO MINIMUM CAPITAL | No requirement of minimum paid-up capital required for starting a Private Limited Company. |
EASE OF FORMATION | A Private Limited Company can be easily registered and is easy to manage and run with less legal compliance's. |
BUILD A GREAT TEAM | Today, in the business world it is important to have the option of providing stock ownership or ESOPs to employees which can be offered only by Limited companies. |
SEPARATE LEGAL ENTITY | The biggest advantage of a Private Limited Company is that its identity is distinct from that of its members which ultimately limits the liability of members. A company is a separate person having its rights & Obligations enabling it to enter into contracts in its name, right to sue & be sued. |
PERPETUAL SUCCESSION | In case of the death of the owner or transfer of shares, your business won’t get affected as the company is considered as separate from its members. |
LIMITED LIABILITY | The greatest benefit of Private Limited Company is a limited liability. If any liability arises then its member’s assets remain unaffected; members are only liable for unpaid shares held by them and not more than that. Stakeholders are not liable for corporate debts and liabilities. |
GREATER FLEXIBILITY | A Private Limited Company is required to perform lesser legal formalities as compared to a Public Limited Company. It enjoys special exemptions and privileges under the company law. Therefore, in Private Limited Company, less number of compliance is required. |
SECRECY | A Private Limited Company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets. |
ATTRACT INVESTMENT | Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability. Venture capitalists and private equity funds prefer to invest in this structure. |
TRANSPARENCY & CREDIBILITY | Private Limited Company enjoys enhanced transparency as the information relating to a company is available in a publicly searchable database. Thus, able to win the trust of the general public & improve business credibility. |
EXIT PLAN | It offers the best type of exit plan for all promoters. Only the shares of a company can be sold or transferred to another entity without any hassles, while the business remains a going concern. |
GOING INTERNATIONAL | A private limited company allows FDI up to 100% through automatic route without any prior government approval. |
1. Self Attested PAN Card copy
2. Self Attested copy of any one of the Identity Proof(Voter's ID/Passport/Driver's License)
3. Self Attested copy of Address Proof in the name of the director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)
4. Passport-sized photograph
1. Rent Agreement (Notarised: For rented property)
2. Sale Deed/Property Deed in English (in case of owned property)
3. No-objection Certificate from the property owner
4. Latest Electricity Bill / Mobile or Telephone Bill / Latest Bank Statement/Gas Bill
Private Limited Company | Limited Liability Partnership | One Person Company | Partnership Firm | |
Preferred for | Start-ups | Professional Services Firms | Sole Proprietors | Small-medium sized businesses |
Limited Liability Protection | Yes | Yes | Yes | No |
Minimum Requirement | 2 Shareholders | 2 Designated Partners | 1 Director 1 Nominee |
2 Partners |
Fund Raising Options | High | Low | Low | Low |
Tax Advantage | Few | Most | Few | Minimal |
Statutory Compliance's | High | Low | High | Minimal |
Compliance Cost | High | Medium | Medium | Low |
Get Started >> | Get Started >> | Get Started >> | Get Started >> |
We'll never share your email with anyone else.