A Private Limited Company is the most preferred business structure in India for startups, entrepreneurs, and growth-driven businesses.
It provides limited liability protection to its shareholders while maintaining a flexible ownership structure.
This entity is legally recognized as a separate person — capable of owning assets, entering contracts, and operating independently.
It’s ideal for businesses aiming to scale, attract investors, and build long-term credibility.
Registering as a Private Limited Company gives your business:
A Private Limited Company is the right choice when:
You expect steady growth and want to build long-term business credibility.
| Registration Type | Purpose |
| PAN & TAN (Company) | For income tax and TDS purposes |
| GST Registration | For tax compliance and invoicing |
| Udyam (MSME) Registration | For government incentives and benefits |
| Professional Tax Registration | Applicable in certain states |
| Current Bank Account | For financial operations |
| Parameters | Private Limited Company | LLP (Limited Liability Partnership) | Partnership Firm |
|---|---|---|---|
| Minimum Members | 2 Directors and 2 Shareholders | 2 Designated Partners | 2 Partners |
| Maximum Members | 200 Shareholders | No upper limit | 20 Partners |
| Liability | Limited to unpaid share capital | Limited to capital contribution | Unlimited |
| Legal Status | Separate legal entity | Separate legal entity | Not a separate entity |
| Compliance | High | Moderate | Low |
| Tax Treatment | Taxed as a company | Taxed as a separate entity | Taxed as a firm |
| Audit Requirement | Mandatory | Based on turnover | Based on turnover |
| Fundraising | Easy through shares or equity | Limited | Difficult |
| Ownership Transfer | Easy via share transfer | Requires consent | Difficult |
| Perpetual Succession | Yes | Yes | No |
| Cost of Formation | Higher | Moderate | Low |
| Best Suited For | Startups, scaling businesses | Professionals, small firms | Family or local businesses |
A minimum of two directors and two shareholders are required to start.
If you have any questions or need assistance with proprietorship registration, feel free to contact us.
Contact UsARK Advisor is your trusted partner for all business registration needs. Our team of experienced Chartered Accountants provides comprehensive support, ensuring a smooth and hassle-free registration process.
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