{"id":322,"date":"2018-07-13T05:48:19","date_gmt":"2018-07-13T05:48:19","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=322"},"modified":"2020-10-07T05:10:28","modified_gmt":"2020-10-07T05:10:28","slug":"pvt-ltd-company-registration-suitable-startups","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/pvt-ltd-company-registration-suitable-startups\/","title":{"rendered":"Pvt Ltd company registration : Suitable for startups"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\" style=\"transform:translate3d(0,0,0);\"><h3 style=\"text-align: justify;\">For<em> startups and small businesses, <\/em>private<em> limited company registration is advised.<\/em><\/h3>\n<p style=\"text-align: justify;\">A <strong><a href=\"https:\/\/www.legalraasta.com\/private-limited-company-registration\/\">Private Limited Company registration<\/a><\/strong> is the best form of company for a startup, especially one which is growth-oriented. The reasons for this are many like,<\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: left;\">Usually, startups have more than one founder so it is difficult to be a <strong><a href=\"https:\/\/companyregistrationonline.in\/blog\/one-person-company\/\">One Person Company<\/a><\/strong>. A <strong><a href=\"https:\/\/companyregistrationonline.in\/blog\/private-limited-company\/\">private limited company<\/a><\/strong> can have many directors and <strong><a href=\"https:\/\/companyregistrationonline.in\/blog\/can-director-company\/\">choosing the right directors<\/a><\/strong> is a very important task.<\/li>\n<li style=\"text-align: left;\">They also aim at getting cash from angel investors and Venture Capitalists (VC&#8217;s) from the further issue of shares.<\/li>\n<li style=\"text-align: left;\">Employee stock ownership plan (ESOP) in the private companies enables employees to hold a stake in the startup.<\/li>\n<li style=\"text-align: left;\">Moreover, a minimum share capital requirement of Rs 1 Lakh for incorporation has been removed.<\/li>\n<li style=\"text-align: left;\">The government has offered various exemptions including a tax holiday. This makes a <strong><a href=\"https:\/\/companyregistrationonline.in\/private-limited-company-registration\/\">private limited company<\/a><\/strong> form more suitable. Certain conditions are to be met by eligible startups to be entitled to a tax holiday which extends to 3 blocks out of the initial 5 years.<\/li>\n<li style=\"text-align: left;\">To claim eligibility, the company must be registered between April 1, 2016- 31 March 2019, and its annual turnover must not exceed Rs 25 crore and it must have obtained a certificate of eligible business from the Inter-Ministerial Board.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><em>Boost on registration of private limited companies<\/em><\/h3>\n<p style=\"text-align: justify;\">The flourishing startup ecosystem seems to have boosted the growth of private companies. During the year 2015-16, as many as 60,414 <a href=\"https:\/\/www.legalraasta.com\/private-limited-company-registration\/\"><strong>private limited companies<\/strong><\/a> with an aggregate authorized capital of Rs 10,845 crore were registered (statistics are up to December 31) &#8211; a hike of 36% over the previous corresponding period as per <strong><a href=\"http:\/\/www.mca.gov.in\">MCA<\/a><\/strong> report.<\/p>\n<blockquote>\n<p class=\"entry-title fusion-post-title\" data-fontsize=\"30\" data-lineheight=\"37\"><a href=\"https:\/\/www.legalraasta.com\/blog\/board-reports-opc-small-company\/\">Board Reports for OPC and Small Company<\/a><\/p>\n<\/blockquote>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":311,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[558],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pvt ltd company registration : Suitable for startups | LegalRaasta<\/title>\n<meta name=\"description\" content=\"Get Pvt ltd company registration in Delhi, Gurgaon, Noida and other cities in India with the help of experts. 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