Shareholders’ liability is limited to their share capital, protecting their personal assets from business debts and liabilities.

            The company is a separate legal entity from its shareholders, with the ability to own property, enter into contracts, and sue or be sued.

            The company continues to exist despite changes in ownership or management, ensuring continuity.

            Shares can be transferred, but the transfer is often restricted to maintain the private nature of the company.

            A Private Limited Company must adhere to specific regulatory requirements, including filing annual returns and maintaining statutory registers.

           Shareholders are not personally liable for the company’s debts beyond their investment in shares, offering financial protection.

           Easier to raise capital through the issuance of shares to investors or venture capitalists.

           A Private Limited Company is often viewed as more credible and stable, which can attract customers, suppliers, and investors.

           The company enjoys various tax benefits, including lower corporate tax rates compared to individual income tax rates.

           Clear management structure with a board of directors overseeing the company’s operations, ensuring efficient governance and decision-making.

            Select a unique name for the company that complies with the naming guidelines set by the Ministry of Corporate Affairs (MCA).

           Acquire digital signature certificates (DSC) for all proposed directors to facilitate electronic filing of documents.

           Obtain DIN for all proposed directors. This can be applied for through the MCA portal.

            Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) outlining the company’s objectives, governance structure, and operational rules.

File an application for incorporation with the MCA, including the MOA, AOA, DINs, DSCs, and other required documents.

Upon approval, the company will receive a Certificate of Incorporation.

            Apply for a PAN card in the name of the company for tax purposes.

            Open a current bank account in the name of the company. Banks typically require the Certificate of Incorporation, PAN card, and proof of address.

Register for GST if the company’s annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states) or if it engages in inter-state trade.

Voluntary GST registration can also be opted for to avail of input tax credit.

MSME (Udyam) Registration – Beneficial for small businesses to avail of government schemes and benefits.

Trade License – Required for certain types of businesses, issued by the local municipal authority.

Shop and Establishment Act License – Needed for commercial establishments as per state regulations.

         Register for professional tax if mandated by the state government based on income and employment.

          If the company is required to deduct tax at source (TDS), obtain a TAN (Tax Deduction and Collection Account Number).

          Ensure compliance with Provident Fund (PF) and Employee State Insurance (ESI) regulations if the company employs staff.

            Consider registering a trademark to protect the company’s name, logo, or brand.

          Apply for an Import Export Code (IEC) if the company is involved in import-export activities.