February 27, 2021


A Private Limited Company is a corporate business structure that is privately owned by a small group of persons. This business structure attracts startups due to its benefits. Before starting a company or any other form of business structure, it is important to know how the structure will affect the business.

Here are the advantages of starting a Private Limited Company

  • Easy & Speedy Registration

There is an online private limited company registration process, hence it becomes easy to register a company. Registration of Pvt Ltd Co. is done with the Ministry of Corporate Affairs. With the minimum documentation, the company is registered with ease in very few days.

  • No Minimum Capital Requirement

To start a private limited company, there is no requirement of minimum capital. It can be started with any amount of capital. The members of the company have to deposit the amount which they have subscribed from the total capital at the time of registration of a private limited company.

  • Startup Benefits

The entity registered under Startup India Registration can avail various benefits available under the scheme. Hence a Pvt ltd co. will get many monetary and non-monetary benefits if they get their company registered under Startup India Registration.

  • Limited Liability

The liability of the members of a private limited company is limited up to the share capital subscribed in the company. So, the members are not liable for any additional liability incurred by a company. Hence an investment in a private limited company is safe for the members.

  • Legal Existence

A private limited company is considered as a separate entity. So, it possesses a separate legal existence from its owner. It is not a natural person but it is a juristic person. A juristic person is a legal person under the law. A company in the capacity of a juristic person can enter into a contract or buy or sell or can sue or can be sued like any other person.  

  • Easy Credit Facility

The data of the companies are easily available online on the portal of the Ministry of Corporate Affairs. So, the functioning of a company is highly transparent. A private limited company enjoys good credit facilities. It is due to a company is a separate entity and perpetuity. 

  • Perpetuity

A company is not controlled by any single person. The company possesses perpetual succession. The existence of the company is not dependent on any particular person. It is not affected by the outgoing or incoming of any director or shareholder. The company will remain in existence until it is legally dissolved following the procedure provided in the ACT.

  • Funding

A private limited company can easily raise more capital by further issue of share capital. It can issue shares of up to 200 members. Further, it can also raise funding by issuing debts such as debentures or deposits. It helps to expand the business of the company.

With an ample of advantages, it is good to start a private limited company over another form of businesses knowing its advantages and disadvantages. It attracts investors to invest more due to its transparency and limited liability.

We at Wisefilings are here to help you to register Private Limited Company. For any further assistance, you can directly contact us at 9099975990 or mail us at

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