Fastest Private Limited Company Registration in Delhi
Eligibility to form Private Limited Company
- Number of Directors- Minimum 2 and Maximum 15.
- Number of shareholders- Minimum 2 and maximum no limit. However, one person can act as both director and shareholder.
- Citizenship- At least one director should hold Indian Citizenship.
Advantages of Becoming Private Limited Company
Separate Legal Existence
The Company is considered as artificial person created by law, thus the existence of Private Limited Company is distinct from its members, it enjoys its own identity, and thus it can sue or being sued in its own name and it can also possess the assets in its name.
Limited Libility
The characteristic of Limited Liability is like cherry on the cake , the shareholders enjoy the privilege of having liability limited only up to the amount of shares subscribed, hence unlike Partnership Firm ,investors are attracted to this kind of form of business.
No Minimum Capital Requirement
There is a misbelief that one requires huge investments to start a Private Limited Company, though in reality there is no minimum capital requirement, one can start a Private Limited Company even with minimal amount.
Startup Benefits
Private Company is one of the most organized and trusted form of business, it is recognized on all the platforms of governments, such as Startup India Registration, for availing the benefits one must be having the registered entity where Private Limited Company is available as one of the option.
Further for registration under MSME, Private Limited Company is eligible.
Perpetual Existence
The existence of Private Limited Company is not dependent on any factor, hence members and directors of the company may change but it will not affect the status of the Company.
Comparison
| Private Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Proprietorship Firm | |
| Act | Companies Act, 2013 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Indian Partnership Act, 1932 | No specified Act |
| Registration Requirement | Mandatory | Mandatory | Mandatory | Optional | No |
| Number of members | 2 – 200 | Only 1 | 2 – Unlimited | 2 – 50 | Only 1 |
| Number of Director/Partner | 2 – 15 | Only 1 | 2 – Unlimited | 2 – Unlimited | Only 1 |
| Separate Legal Entity | Yes | Yes | Yes | No | No |
| Liability Protection | Limited | Limited | Limited | Unlimited | Unlimited |
| Statutory Audit | Mandatory | Mandatory | Dependent | Not mandatory | Not mandatory |
| Ownership Transfer ability | Yes | No | Yes | No | No |
| Uninterrupted Existence | Yes | Yes | Yes | No | No |
| Foreign Participation | Allowed | Not Allowed | Allowed | Not Allowed | Not Allowed |
| Tax Rates | Moderate | Moderate | High | High | Low |
| Statutory Compliance | High | Moderate | Moderate | Less | Less |