September 21, 2023
company registration in india

Why choose a private limited company?

Why choose a private limited company?

A Private Limited Company can be the right choice for you.

When you listen to the word “private limited company”, you interpret that a private company means a small company. Well, that’s not true.

The biggest companies in India, like Infosys, Wipro Ltd., Reliance Industries, Etc are private companies.

A Private Limited Company is an organizational carrier to take on business in the corporate formation. 

The process of company registration is implemented under the Indian Companies Act, 2013. The Ministry of Corporate Affairs is the governing body for this purpose. 

The process of new company registration is simplified by the alteration in the provision applicable. 

10 Reasons to choose the private limited company over other business formation


In a public company, ownership and regulation of shares can be sold to the public on an open market. In a private limited company, shares can be sold or transferred to other people by the choice of the owner.

Shares of such a company are owned by a group of private investors, founders, or management. 

Thus there will be less no. of shareholders, which means less confusion and complexity in decision making and management.


For a private company, the minimum number of required shareholders is 2. 

Whereas, for a public company, you need a minimum of 7 shareholders. Thus, the company registration process also becomes easy.


Sometimes legal formalities can be very expensive and require time, don’t they?  Private limited companies have a shorter list of legal formalities compared to a public company.


A public company is required to reveal its financial reports to the people every quarter. Whereas private companies are not restrained to any such compulsion.


Management and Decision making becomes more complex and confusing as shareholders are to be consulted. This complex process is reduced in a private company as the no. of shareholders is less. To make the process much less complex, you can opt for online company registration. 


Managers of a public company are focused on increasing the value of shares. While managers of the private company are more flexible in the short term and long term business decisions. 


Private limited companies are not under the pressure from the stock market. It doesn’t have to worry about shareholder expectations and interference till they work in law. Shareholders in public companies are focused on current earnings and they exert pressure on the company to increase earnings.


Managers of public companies are pressurized to enhance earnings in the small term. This will increase the value of their stock. Private companies can concentrate on long-term earnings as there is no such force.


You will need a lot of money for a public company. There is no pressure on fund requirements in private company registration.


It is obviously not proper, for competitors to know of your business secrets.

Confidential information such as executive compensation and legal settlements cannot be kept confidential in public companies. 

Such type of information is more safe and secure in a private company.

So, therefore, a Private Company is less complicated as compared to a public company. It is also less expensive and requires less time.

The choice between private and public companies totally depends on the situation. However, private limited company registration is preferred more over other forms of companies.

 Get Expert Services For Private Limited Company Registration For Your Business

Documents required for company registration

The documents needed for Private Limited Company registration is of utmost significance. Any error in documents may result in a waste of effort in the entire process. 

Private Limited Company under Company Act, 2013 allows compliance in combining various types of companies. 

The documents needed for Private Limited Company registration are as follows:

For all directors

  • Self Attested Copy of Pan Card.
  • Self Attested copy of Aadhar Card / Driving License /  Passport / Voter Identity Card
  • Passport size photograph.
  • Self Attested Copy of Mobile Bill / Telephone Bill 
  • Self Attested Copy of Water Bill /  Electricity Bill 
  • Self Attested Copy of Bank Statement /Bank Passbook with the latest transaction

To register the office

  • No-Objection letter from the Address Owner to utilize the address of the registered office of the Company.
  • Electricity Bill/ Water Bill/ Telephone Bill /Gas Bill  -To be signed by the of the Owner of Premises

What is the price of the Private Limited Company Registration?

The following is the Pvt ltd company registration fees:

Plan amountRs 10999
DSCRs 2000
DINRs 1000
Professional FeesRs  3799
Stamp Duty for registration of pvt ltd company(approx)Rs 2500
Notary FeesRs  500
Govt Fees (RUN, PAN, TAN)Rs 1200
Goods and Services Tax @ 18%Rs  684
TotalRs 11683

How to do Private Limited Company registration in Kerala

After you have chosen to begin your own business, the next issue is How to Register a company in Kerala. Which one should I choose? Sole Proprietary, Partnership, Limited Liability Partnership (LLP), Private Limited Company, One Person Company (OPC), or Public Limited Company. 

All new businesses coming up would find it very helpful. Learn how to get the company registered as a public/private limited. Here are the steps.

1. Name Your Business

You have to first settle on a name for your company. 

The name of the business should be distinct and memorable. You must give at least one (maximum 6) name(s) to the registrar of companies. 

The availability of names will be verified by the registrar. The name should include an object. You cannot simply name “ABC Private Limited”. It will be denied. 

Instead, you should consider labeling it “ABC Software Solutions Private Limited” or “ABC Travel and Tours Private Limited” etc.

2. Register For e-Filing at MCA Portal: 

This is the succeeding step that you have to use as the business owner. You ought to first register as a user at the Ministry of Corporate Affairs (MCA) website.

3. Apply for Director Identification Number (DIN): 

All the current or intending directors of the company need to get a Director Identification Number (DIN). You can download the form online and it needs to be signed by the promoters.

4. Get a Digital Signature Certificate (DSC): 

The Digital Signature is needed on all documents that are submitted in electronic form. This is to assure the safety and rightfulness of the documents.

5. Register DSC at MCA Website: 

The DSC received has to be listed on the Ministry of Corporate Affairs (MCA) Website.

6. Apply for the support of your company name: 

Now you have to get support for your company name from the registrar of companies. The name approval is asked by filing eForm-1A. This form needs a Digital Signature of one of the Promoters. Some of the details that are needed on the form are as follows:

a. Authorized capital for the proposed company

b. Main objectives of the proposed company

c. Location of the proposed company

d. Copy of trademark application/certificate (if applicable)

e. In case, there is a logo linked with the trademark then the image of the logo

f. Balance sheet (if applicable) and Income tax returns for the previous 2 years

g. If the Registrar of Companies allows the proposed name, a letter saying the acceptance of the proposed name is published. If a name is denied then the candidate has to reapply for the support of the name of the company.

7. Draft Memorandum of Association: 

In this step, you have to draft the Memorandum of Association for the company.

8. Form Article of Association: This (AOA) can be easily fixed under the guidance of any Lawyer or Chartered Accountant.

9. Check, Stamp & Sign AOA: After careful analysis of the MOA and AOA, the Registrar of Companies must check them.

10. Additional steps for the Creation of a Public Limited Company: 

Some additional forms have to be tendered to the Ministry of Corporate Affairs. They are:

a. eForm-20, to be filled and offered by the director or company secretary.

b. Statement in lieu of Prospectus to be offered to the Registrar of Companies

c. Affidavit from each director declaring that the Company has not started its Business to Registrar of Companies

d. Board resolution for approval of preliminary charges, the appointment of first auditors to Registrar of Companies

11. Registered Office Address: You require a registered office address for your company. You should provide a rent agreement, Utility Bill, NOC from the Owner of the building, etc. as proof of occupancy. 

Pvt Ltd Company is the most common choice to start a business in India by companies and Startups. 

Pvt Ltd company is included under the Companies Act of 2013 and administered by the Ministry of Corporate Affairs (MCA). It is a registered organization with a separate legal personality from its owners. 

It has key benefits like safeguard the individual assets of the owners from business accounts and Tax advantage. 

We are India’s Best Startup Specialists. Register your Pvt Ltd Company Registration in Pune or anywhere in the country.

 Company Registration at the most economical price by LegalSalah. 


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