All you need to know about establishing a Private Limited Company
Taking the road less taken can turn out to be one of the most fulfilling experiences of a lifetime. There is hardly any joy in doing the things everyone can do. But there is a joy mighty sweet when you succeed on a road less taken and become an inspiration for generations to come.
Starting a business can turn out to be one of the most interesting experiences of your life. One of the important decisions made by an entrepreneur or a start-up while starting this journey is the selection of his business entity. The choice of the business entity has long term implications throughout the life-cycle of the business. Hence, it is recommended to discuss your business plan with a professional, and choose an entity that will support the vision of the business.
Cut to the chase; we highly recommend you opt for setting up a Private Limited Company. Read on and you’ll understand why.
A Private Limited Company is the most popular as well as the most preferred choice of business entity in India. As it requires a minimum of 2 members, it is most appropriate for small and medium-sized businesses and start-ups. It is a privately held business entity with a limited liability and allows for a 100% foreign direct investment with government approval. It takes only around two weeks to set up a Private Limited Company. It also allows a significant degree of distinction between the business entity and the management.
Basic requirements for Private Limited Company Registration:
- A minimum 2 Shareholders are required
- A minimum 2 Directors are required
- The Directors and Shareholders generally be the same person
- One of the Director must definitely be a resident of India
- The minimum advisable Authorised Share Capital is INR 1 lakh
- DIN (Director Identification Number) for all directors is needed
- DSC (Digital Signature Certificate) for 2 promoters and 1 witness is required