Quick Answer
Registering a private limited company in India is the best choice for startups because it protects liability and facilitates fundraising, as investors prefer this corporate structure. The government has made the process easier and more transparent by reducing incorporation fees to near zero.
Are you a startup planning to be a unicorn take the first register your private limited company .
India is destined to be the next startup hub , silicon valley will be replaced by Indian cities such as Bengaluru , Chennai , Gurugram for which registering as a private limited is the best choice as the liability is protected
Registering a private limited has become an easy and transparent process where the government has reduced and relaxed the fees to near 0 to enable all startups to register as Private limited companies
Sources: http://www.mca.gov.in/
Registering a company is the only best way to start a business in India, but there are many other ways to start your business in India,
The easiest way to start your own business is to GST Registration but it comes with a rider unlimited liability, so registering a private limited is the best
Now, here are five reasons why you should register your company as a private limited to start your startup business in India.
1. It’s not a Costly affair: Government has introduced ZERO fees incorporation, meaning we pay for PAN , TAN , DSC and Profession Fees along with Stamp duty of the state which is far lower than the previous regimens and rules, startup need to make use of it
2. COMPANIES ACT COMPLIANCES ARE HASSLE FREE: Once you are registered as a private limited company, then you are bound to follow the free flowing and easy to comply binding provisions of the Companies Act
3.THE COMPLIANCE IS HASSLE FREE: To get on top of the business, you must be free in all senses with all the focus on the prime objective. However, this is not true when you choose the company as your form of business. Contact us at + 91 9962230333 in case of any difficulty in filing
4.THE CLOSURE COST: In India, it is easy to start but difficult to exist. Closing a private limited company is not easy. If you have carried on the business for some time and now you want to close it, then you might have to do a lot of hard work5
5.FUNDRAISING MADE EASY: All angel investors, fund houses will want a corporate structure to protect their investment hence they present only a private limited company as an option to name few successful start up in investor have played a major role ( Flipkart ,OLA , Swingy and list goes on )
Conclusion
As fund raising and business expansion is the primary motive is the primary objective of any company its to start in the correct structure form day than regret later where there are cases where ROC does not grant Name approval if some one has already taken the name .
As the proverb goes , “prevention is better than cure “ the new proverb for business “ Start with the correct structure it the prevention , then regret later and search for a cure”
All the very best to all entrepreneur
For assistance please contact us on +91 99622 30333
Registering as a private limited company is considered the best choice because it offers protected liability for the owners and is the preferred structure for angel investors and fund houses looking to protect their investments during the fundraising process.
No, it is not a costly affair. The government has introduced zero fees for incorporation. Startups only need to cover costs for PAN, TAN, digital signature certificates (DSC), professional fees, and state stamp duty, which are significantly lower than previous regimens.
The process involves four main steps: choosing a company name and filing the RUN form with the Ministry of Corporate Affairs, preparing documents like INC 9 and rental agreements, filing SPICE 32 with the MOA and AOA, and finally receiving the Certificate of Incorporation along with PAN and TAN.
Yes, fundraising is made easier because angel investors and fund houses specifically seek a formal corporate structure to protect their investments. Successful startups like Flipkart, OLA, and Swiggy have utilized this structure to play a major role in their growth and investment journey.
If you experience any difficulty in filing for your company registration, you can contact the service provider directly at +91 99622 30333. They provide support for entrepreneurs navigating the registration process in India to ensure they start with the correct business structure.