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Private Limited Company -The next step to ownership

Legal Raasta
15th Apr 2019
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Establishing a private limited company with creative ideas is like giving wings to your own dreams. Especially when you are the owner of your own company. The most catchy part of starting the journey of owning a private company is a big risk. But a great profit is earned and one has to choose the finest entity for that. A company will be popular on the basis of catchy and engaging taglines. The private limited company do full justification to the taglines. The best examples are seen today.


  • Reliance Industries Limited
  • TATA Steel Limited
  • Bajaj Auto Ltd
  • Bharti Tele-Ventures Limited


Many more all these company are well-known and famed private limited companies in India. As the name specifies its meaning a "private" means personal "Limited" means restricted in size and "Company" a commercial business.


Pvt.Ltd is a short form used after the company's name. A private limited company is personally operated for small businesses with limited liabilities. The responsibility of Private Limited Company members is confined to the number of shares individually owned by them. The buying and selling the shares of the private limited company cannot be done publicly.


The people who are involved in private companies are Directors, shareholders, employees and members. In the company at least 2 members are required and a maximum of 200 and there should be 2 directors. The Least paid-up capital required to establish a company is Rs. 1 Lakh.


Why would anyone pick the private limited company?


The answer to this question- the private limited company has a great team of employees. Who are talented to build a remarkable name for the company. The limited liability is big protection for the owners of the private company . In the case of profit and loss situations limited liability secure there ways. So, in private companies its a mandatory process to go for LLP Registration(Limited Liability Partnership) for securing the future of the company. If the company is facing any loss the company's assets are taken into the account their personal assets are safe.


The decision-making process in a private company is swift and quick. The time is utilised in strengthening the efficient and smooth working of the company. The pressure of stock and its market is eliminated part of this company. The shareholder's interference and expectation are according to the law of the company. They can focus on long-term earnings.


The private limited companies have the plus point that in-laws of the company.


The situation that makes the private limited company advantageous.


  • The owner or any member dies
  • Bank corrupted
  • Leave the company or transfers his/her share to another member


The company will remain for long-run and it will not dissolve in any situation. There is no option for shareholders to trade there shares with the public and let them subscribe to their shares. Even, shares cannot be traded on a public stock exchange as there are a limited amount of shareholders. It is obligatory that you should state Pvt. Ltd at the end of a company name.


The registration of a private company is way more easy and accessible.


The steps of registration one need to follow up by establishing a private limited company.


  • Name approval by the ministry of the cooperating affair(MCA)
  • Digital sign
  • Submission of incorporation application with MCA 
  • Pvt.Ltd. incorporation certificate. 


The mandatory documentation for the commencement of a private limited company. 


  • A copy of Aadhaar Card or Voter ID
  • A copy of Electricity Bill
  • Passport and PAN card copy
  • NOC from the owner of the property
  • 2 passport size photographs of the owner
  • Proof of address of the company and the bank statements. 
  • All the documents need to be attested.


A private limited company has all advantage and interest of partnership like compliance. Also, it has higher capital enrichment and intensified skills and techniques. Even it has much more to contribute merged with limited liability, higher resistance and legitimate existence. Company ownership is separate and private. Hence, it does not require to face the Exchange Commission and strict Securities filing provisions of public companies.


This article is framed by Shrishti Jain the content writer in Legalraasta. It is India's top portal. The company render its finest and great service like company registration, loans,  Private Limited Company Registration , etc.

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