Advantages of registering a Private Limited Company in India

Private Limited Company Registration

Private Limited Company is based on old school like concept and almost 93 percent companies in India are Private Limited Company. Private Limited Company has limited liability and also limits number of shareholder upto 200. Shareholders of Private Limited Companies cannot trade shares publicly. But when anyone is new in the business world, it is impossible for him to understand these technical terms. So, let’s talk about some basic positive points of registering a Private Limited Company.


Name is the first identity of a company. Choose a name that is simple, attractive and unique. Remember that your company will be recognized by name and should not be same with any other company. For getting a name you need to apply in MCA website. If the name is not similar with other company then they will approve the name for 20 days only and you have to register your company within these 20 days. “Private Limited” must be added after the name of the company like – ‘PQRST Private Limited’.

You can also choose name according to the culture of the place. As an example, at the time of company registration in Jaipur, the name can be selected according to the culture of Rajasthan.


It is always better to have a partner in your business. The person can help you in different aspects like – place, funds etc. You can share business ideas also that will help to expand the business. This person can add more people to your contact list. The members of Private Limited Company can be upto 200 but at the beginning you don’t require this. In future, if you need more members you can add members in your company.

Limited Liability

The limited liability clause is the most important tool for a private limited company. It is little difficult to understand the term. Suppose, you run a proprietorship company and have taken a loan for your business. If you fail to repay the loan, the creditor will take your personal assets along with the company assets.  If you register business as a Private Limited Company, you need not to worry about this problem. If company has taken a loan and unable to repay it, then you have to pay only the unpaid value of your shares in this company.


The money that is needed to start the business is called Capital. In earlier days, shareholders had to deposit minimum Rs. 1 lakh. But now there is no hard and fast rule of a private limited company. If you don’t need huge amount, you can choose lesser capital for your business. So, there will be a minimum risk of going in mud with the company. Apart from these points, there are many more aspects to register your company as a Private Limited Company. The most important task to do at the time of registration is the GST filing. It can be done manually or online. Tax consultants can help you in this matter. Suppose, you have a Pvt. Ltd. company in Jaipur then online GST filing in Jaipur can be done with the help of a consultant.

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