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What is a Public Limited Company? If you’re planning to start a big business or want to raise money from the public, …
If you’re planning to start a business, you’ve probably heard the term “Private Limited Company.” But what does it really mean? It’s a type of business that is privately owned and has limited liability. This means the company and its owners are considered separate entities, ensuring that the personal assets of the owners are protected. In this blog, I’ll explain what a Private Limited Company is, how it works, and why many people choose this structure.
What is a Public Limited Company? If you’re planning to start a big business or want to raise money from the public, …
What is A Private Limited Company? If you’re planning to start a business, you’ve probably heard the term “Private Limited Company.” But …
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This is the most commonly chosen business type in India. The company’s shares are not available to the public. Only a few selected people (called shareholders) can own the business. At least two people are needed to start a Private Limited Company, and it can have up to 200 members.
Now, how does it work? It is considered a distinct legal entity. This means it can own property, open a bank account, and take loans in its own name. The personal money and assets of the owners are safe in any cases.
The company is managed by directors, and all rules and operations are guided by the Companies Act, 2013. It also has to follow proper compliance like filing returns and maintaining records. So, it gives both safety and professionalism to your business.
A Private Limited Company comes with some very useful features that make it a great choice for many small and growing businesses in India.
All these features make it a safe, professional, and reliable way to run a business.
There are many advantages to registering a Private Limited Company in Rajasthan, especially if you want to run your business professionally and grow it over time.
Lastly, registering a company gives your business a legal identity, which is important for growth, branding, and future planning. It’s a smart and secure way to build a strong business.
While a Private Limited Company has many benefits, there are also some disadvantages you should know before choosing this business structure.
In short, if you’re ready for some paperwork and legal responsibilities, it’s manageable. Otherwise, it may feel too formal for very small businesses.
A Private Limited Company and a Public Limited Company are both types of registered companies in India, but they work differently.
In short, private limited companies are best for small to medium businesses, while public companies are suitable for large businesses looking to raise money from the public.
In a Private Limited Company, a director is someone who is responsible for managing the company and making important decisions. But who can become a director? The answer is simple.
Any individual who is at least 18 years old can become a director in a Private Limited Company. The person must be of sound mind, not declared insolvent (bankrupt), and not disqualified by law. Both Indian citizens and foreigners can become directors, which means even an NRI can be a director in an Indian company.
To officially become a director, the person must have a Director Identification Number (DIN), which is a unique number issued by the government.
Usually, a Private Limited Company must have at least two directors, and it can have up to 15 directors without needing special permission.
So, whether you’re a business owner, investor, or professional, if you meet the rules, you can be a company director.
A Private Limited Company is one of the most preferred business structures in India due to its limited liability, separate legal identity, and ease of raising funds. Whether you’re a startup or a growing business, choosing this model gives you long-term benefits. If you’re planning for private limited company registration in Rajasthan, it’s important to follow the correct process and take expert help to avoid mistakes. With the right guidance, your business can grow confidently and legally right from the beginning.
At E Accountax Manager, we simplify business registration in Rajasthan with step-by-step support and expert advice. From documentation to government filings, we handle everything with care and clarity. We help startups, MSMEs, and growing businesses register quickly and stay compliant—saving you time, money, and effort.
CA Jitendra Agarwal, a Chartered Accountant, is an experienced Income Tax Advisor with a proven track record in tax planning and compliance.
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