Home Business Starting a business? 6 reasons you should select Private Limited Company

Starting a business? 6 reasons you should select Private Limited Company

reasons to register pvt ltd company

Starting your own business is interesting experience but which form of organization to choose is a critical decision to make also it is vital importance for entrepreneurs. A Private Limited Company is the popular choice to make, due to the varied benefits it offers for start-ups. This article will shed light on why one should register a Private Limited Company to begin their start-up.

Reason to register as private limited company

  1. Separate legal identity – The identity of member and company is different. Profit or Loss earned is not on member but on the company because of which personal asset of member are not effect
  2. Ease of raising fund – Private Company is more credible as it can raise fund from external sources from banks and other financial institution. Even it issue shares which increase the investment capacity of the company.
  3. Perpetual Succession – Any change in member or directors does not affect the existence of the company.
  4. Limited Liability – The Liability of shareholder or member are limited. no personal assets are at risk as company itself is fully liable for it’s debt.
  5. Less Legal Compliance – The legal Compliance of Private Limited is less as compare to Public Limited Company to promote the start-ups in India.
  6. Additional Credibility – For Private Limited Company Registration, Many sources of finance is available which increases source of funds. In turn increasing credibility which helps the company to grow.


Related: What all Young Entrepreneurs Need to Know About Startups

Private Limited Company has a wide range of scope. With this we would like to share Mr. Ranveer Mehta’s success story, whose start-up is a well- established Company now. Mr.Mehta wanted to start his own business and had a proper plan of business but was confused with which entity to choose. Mr Mehta came to Afleo where our experts guided him to choose the right entity for his business needs and helped him with end to end registration of the Company. Private limited Company was advised to him as it was suitable for his business that made it easy for him to raise funds with less legal compliances. This encouraged him to widen his business and fulfill his dreams. Hope this article encouraged you to start your own business.


Afleo is a leading solution provider w.r.t various necessary registrations for start-ups across entire India. Not only has this but Afleo offer’s legal services such as Company registrations as well deals with IPR services relating to trademark.

Let’s just say, you name the service and Afleo is there for you.


  1. Thank yoս foг another infߋrmativee site. The plаce else may
    I am getting thɑt type of info written in such a ρerfect mеans?

    I’ve a undertgaking that I’m simploy now wrking on, and I have been onn the look out for such information. https://jmfart.blogspot.com/

Comments are closed.