Introduction :

A Private Limited Company is a privately held small business entity. The liability of members of a private limited company is limited to the number of shares held by that member. A private limited company is governed by Companies Act,2013. It is compulsory to add private limited (pvt ltd) to the name of a private limited company India. If a private limited company faces financial risk, its shareholders are not liable to sell their individual assets i.e., they have limited liability. overview In India, an Online Private Limited Company can be registered with a minimum of 2 shareholders (also known as subscribers). However, the maximum number of shareholders can’t be more than 200. However, after amendment in Companies Act, 2013, there is no minimum capital limit now.

Features :

• The liability of each member or shareholder is limited. The personal, individual assets of the shareholders are not at risk.
• Since the public is not asked to subscribe for the firm's shares, a prospectus is not necessary in the case of a private limited company.
• It is mandatory for all private companies to use the word “private limited” after its name.
• A Private Limited Company comes into existence with a minimum of 2 shareholders. There is no upper limit for the member requirements.
• A Private Limited Company has a legal identity which is considered distinct from its shareholders and directors.

Benefits of Company Registration :

• Limited Liability: A private limited company's shareholders have limited liability. This means that as a shareholder, you will only be responsible for the company's liabilities to the extent of your contribution. Because the shareholders have no personal liability, they are not required to pay the company's liability out of their own funds.
• Easy raising of funds: Even though registering a PLC comes with compliance requirements, it is preferred by entrepreneurs as it helps them raise funds through equity, expand and at the same time limits the liability.
• Trustworthiness: The Companies Act of 2013 requires companies in India to register with the Registrar of Companies (ROC). The Ministry of Corporate Affairs (MCA) portal allows anyone to check the company's details. During the formation of the firm, all the directors' information is also submitted. As a result, a Public Limited Company structure is more trustworthy.
• Perpetual Existence: A company has 'perpetual succession,' which means that it will continue to exist until it is lawfully dissolved. Because a company is a separate legal person, it is unaffected by the death or termination of any of its members, and it continues to exist regardless of membership changes.