Business owners always prefer to register a Private Limited Company in India for different reasons, some of them are:

Separate Legal Entity: As per Companies Act, a company is an artificial judicial person which is a separate legal entity from its Directors and Shareholders. Thus a Company enjoys a wider legal capacity to own assets and properties and incur debts whereas the individual company members owe no liability towards the company’s creditors for debts.

Limited Liability: A Company has a limited liability towards a limited amount of debts. The liability of the members with reference to the Company’s debts is limited to the face value of the share purchased by them. This limited liability protection is a unique feature of a Private Limited Company in India.

Perpetual Succession: A Company is considered to be legally active until the winding up of the same through a legal process. A Company is not affected by the death, insanity, or insolvency of an individual member. Thus, It has a continuous existence of a corporation till it is dissolved legally.

Transferability of Shares: Shares of a Company can be transferred to any other person or legal entity in India or abroad, subject to the Article of Association of a Company and the shareholders agreement. This easy transferability of shares attracts most of the entrepreneurs to form a Private Limited Company in India.

Equity Raising: Only through the formation of a Company, the promoters can raise equity funding from Angel Investors, Private Equity Firms & Stock Exchange. A Private Limited Company would suffice for raising equity from Angel Investors and Private Equity Investors.

Better Image and Credibility in the Market: A Private Limited Company always carries a better image and credibility in respect of its customers as well as investors. Corporates, Vendors and Government agencies prefer to deal with a Private Limited Company.

Better positioned to raise Funds & Loans: A Private Limited Company carries a wide range of options to raise funds from bank loans, Angel Investors and Venture Capitalists in comparison to LLPs and OPCs.

Limited Liability Protection: A Company has a limited liability towards a limited amount of debts. The liability of the members with reference to the Company’s debts is limited to the face value of the share purchased by them. This limited liability protection is a unique feature of a Private Limited Company in India that protects the Directors personal assets.

Documents requirements for Company Formation in India is very simple and only scan copies of the documents required by the authorities.

Documents of the Directors of the proposed Company

• Photographs of both the Directors
• PAN Card, Aadhar Card and Voter ID
• Address Proof: Updated Bank statement/Electricity Bill/Telephone Bill/Mobile Bill(not older than 30 days) – any one
• Identity Proof: Voter ID Card/Passport/Driving License (any one)
• Consent of Director (Format will be provided)

Documents for Registered Office Address

• Latest Electricity Bill/Any Other Utility Bill in the name of the owner
• Rent Agreement between owner and proposed Company promoter.
• NOC from the owner (Format will be provided)