How to form a Private Limited Company?

A Limited Company or Private limited company is a voluntary association of not less than two and not more than fifty members, whose liability is limited, the transfer of shares is limited to its members and the general public is not allowed to invite to subscribe to its shares or debentures.

In India it is the most famous or most popular business entity concept to fix a business.


It consists:

Shareholders’ right to transfer shares is restricted;

The number of shareholders is limited to fifty; and

An invitation to the public to subscribe to any shares or debentures is prohibited.


Advantages of Private limited company:

1. The sales of shares can raise capital

2. Owners have limited liability

3. The company has a separate legal identity from its owners

4. Owners can appoint directors on their record of achievement and business knowledge

5. Capital raised from the sales of shares never has to be repaid


Disadvantages of a Limited Company:

1. Founder member may lose control

2. Shares cannot be advertised or sold on the stock exchange

3. Setting up can be expensive because of legal requirements

4. Financial information must be published

5. An annual general meeting of shareholders must be held each year.



To start Private Limited Company in India just fill this form:


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