July 18, 2024

Your entrepreneurial journey has brought you here to know the process to register a private limited company in India, and that makes us glad! The PLC structure has been one of the most preferred business structures in our country, mostly because there are lots of advantages of private limited company registration when compared to other available structures. But first, a little introduction of this popular business structure.  

What is a private limited company?

The private limited company structure was introduced under the Companies Act 2013 as a corporate structure. There are 2 shareholders and 2 directors in a PLC. Shareholders are the owners and Directors are the managers of the company. Owners and managers can be the same person. However, in this structure, owners hold voting rights and managers are responsible for day-to-day operational work.

Things to take into consideration: 

  • One director must be an Indian resident who has stayed in India for at least 12 months continuously.
  • A shareholder can be a person or a corporate entity. In case of a corporate entity, a person is authorized to represent the company as a shareholder.
  • The Company can be registered at a commercial property or residential property, but it must be in India.

Advantages of private limited company registration 

  1. Separate legal entity

The company has a separate legal entity in the eyes of law. Thus, it can operate the business in its own name. The company has its own assets and liabilities. The company can open a bank account to carry out the business and come into a contract with other parties. The owners and managers have a separate existence. Thus, in case of defaulters, the company holds the right to sue a third party.

  1. Uninterrupted existence

The company has perpetual succession. There is a clear distinction between the company and shareholders. Thus, the company is not affected in case of the death or departure of the member. The company continues its existence until it is legally dissolved.

  1. Limited liability 

In case of distress or insolvency, the company is liable to pay debts. Owners have limited liability, therefore, they are liable to pay capital subscribed by them and not liable to pay the debts of the company.

  1. Easy fund raising

Pvt Ltd Company structure provides a major advantage in raising funds through private placement, ESOPs, angel investors, venture capital and many more. No other form of business entity except public limited companies can raise funds through investors. It is one of the main reasons why entrepreneurs go for private limited company registration.

  1. Management and ownership separation 

As mentioned above, directors are called managers and shareholders are called owners. Managers are accountable for the potential work and owners are responsible for the voting control to run the company. Thus, both hold different rights and responsibilities of the business.

Here is a simplified guide on how to register a private limited company. Let us give you a document checklist so that you keep your documents handy before you start the registration process. 

For Indian nationals: 

  • Copy of PAN Card
  • Copy of Aadhaar Card
  • Passport size photograph
  • Voter ID/ Passport/ Driving License
  • Mobile Bill/ Electricity Bill/ Latest Bank account statement 

All the documents must be self-attested by directors and shareholders

For foreign nationals: 

  • Copy of Passport
  • Copy of Passport size photograph 
  • Driving License/ Residence Card/ Bank Statement/ Utility Bill not older than 2 months 

All the documents must be apostilled and notarized from the Indian embassy of that country 

For registered office:  

  • Electricity Bill/ Telephone bill/ Gas Bill of the company
  • Rent agreement 
  • No Objection certificate for the landlord


We hope your understanding of the advantages of PLC has become clearer through this blog. You must hire a practising professional to get the online company registration process done hassle-free. We at LegalWiz.in provide you with proper guidance and complete the registration process in just 12-15 working days. Get in touch with us so that we can focus on registration while you focus on core activities of your business. Good luck for your new venture! 

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