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Private Limited Company

Private limited company registration will be completed in 10 working days from the date of application, completely online & hassle free T&C*

Overview - What is Private Limited Company

  • A private limited company, often abbreviated as Pvt Ltd or Ltd, is a type of business structure that is privately held by a limited number of shareholders. It is one of the most common forms of business entities, offering several advantages such as limited liability, separate legal entity status, and flexibility in operations. Here are some key characteristics and features of a private limited company:

  • Limited Liability: One of the primary advantages of a private limited company is that the liability of its shareholders is limited. In the event of financial obligations or legal disputes, the personal assets of the shareholders are generally protected, and their liability is limited to the amount they have invested or committed to the company.

  • Separate Legal Entity: A private limited company is recognized as a separate legal entity distinct from its shareholders. It means that the company can own assets, enter into contracts, and engage in legal and financial transactions in its own name. The company's obligations and debts are separate from those of its shareholders.

  • Shareholders: A private limited company can have a minimum of two shareholders and a maximum of 200 shareholders. These shareholders can be individuals or corporate entities. Shareholders hold shares in the company, which represents their ownership and control over the company's affairs. Shareholders' rights, responsibilities, and privileges are defined in the company's Articles of Association.

  • Directors: A private limited company must have at least two directors. These directors are responsible for managing the day-to-day operations of the company and making strategic decisions on behalf of the company. The directors can be shareholders themselves, and they are typically appointed or elected by the shareholders.

  • Share Transfer: The shares of a private limited company are generally not freely transferable. Share transfers are subject to certain restrictions and may require the approval of other shareholders or the company's board of directors. This allows the company to maintain control over its ownership and prevent unwanted changes in ownership structure.

  • Capital and Financing: Private limited companies can raise capital by issuing shares to investors. They can also take on debt, obtain loans, or secure financing from banks or financial institutions. This flexibility in raising capital allows private limited companies to fund their growth and expansion plans.

  • Statutory Compliance: Private limited companies have certain legal and regulatory compliance obligations. These include maintaining proper books of accounts, conducting audits, filing annual financial statements, holding annual general meetings, and complying with taxation laws and regulations. Compliance ensures transparency, accountability, and good corporate governance.

  • Confidentiality and Privacy: Compared to publicly traded companies, private limited companies offer greater confidentiality and privacy for their shareholders and directors. Information about the company's financials, operations, and shareholders is not typically disclosed publicly

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