What Is A Private Limited Company?

2 min read

What Is A Private Limited Company?

A private limited company is a kind of business structure that is used by small businesses. A Pvt Ltd company has a separate legal entity that offers limited legal protection for its shareholders. It can have a maximum of 200 shareholders who can operate the company. It is important to register a private limited company in India for many reasons. With the help of private limited company registration, the personal assets of a shareholder are safe during any legal disputes. So, it is important to apply for company registration in India.

Why Do You Need Private Limited Company Registration In India?

It is very important to register a private limited company in India for many reasons. You can effortlessly complete the private limited company registration online.

Here we have listed some important points regarding why you need to apply for company registration in India:

Legal reasons- After registering your company in India, you will be granted some rights and privileges under the law. It also helps your company get legal recognition as a business entity.

Less liability- This is one of the most important reasons for private limited company registration in India. After company registration in India, your personal assets are safe, as banks can only seize the company’s assets

Attract investors- Registering your private limited company makes it easier to attract investors and raise funds. Because the investors prefer to invest in registered companies due to legal reasons. That’s why you should be applying for company registration.

Increases the company’s value- You can increase your brand's value after registering your private limited company. It also helps to gain the trust of traders and investors. The registration provides trustworthiness that your company works under a particular legal framework.

Get tax benefits- You can enjoy certain tax benefits after company registration in India. After registering your private limited company, you will be subject to specific tax regulations and incentives. 

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