Private Limited Company

The most popular form of business organization – a Private Limited Company, is an entity that is privately held and is most suitable for small businesses and startups. It consists of a minimum of two people who will become its Shareholders and Directors.

Its registered status adds trustability to customers, investors, and lenders. And limited liability limits the risk of owners to the amount they invested into it.

• Easy to start- Takes two people
• Limited Risk – Personal assets of owners are not affected
• FDI permitted- Private Company can accept Foreign Investment
• Flexible- Can add investors with/without change in management
• Formal- Any major decision should be made formally by the Board of Directors
• Lower tax rate compared to LLPs or Partnership Firm.

Suitable For:

• Startups – To attract investors
• Two or more people doing the business (A safer form of the organization compared to LLP and Partnership Firm)
• Expanding businesses – increases the scope of investments