What is the procedure to start a private limited company ?

929 votes

Each type of organization caters to a particular need. So it is not possible to advise which type of organization would be suitable unless you disclose the facts and the reasons. Each come with their own set of compliances, rules, regulations, stamp, quarterly/ annual filings etc. So we require more information to advise.

LawRato LawRato

976 votes

You have three options to start your business.

1. One person company (OPC)
2. Limited Liability Partnership (LLP)
3. Private Limited Company.

OPC is ideal if your business model is based only on your efforts and does not require you to partner with anyone else, and your business is below 1 crore. OPC gives you all the benefits of a Pvt limited company but with less compliance requirements

Pvt. Ltd. Company is ideal if your business model requires you to get funding at a future date, and will require you to add additional directors.

LLP or a partnership at will is a formed when partners enter into a business contract, where the partners are jointly liable. An LLP, however, is governed by the Limited Liability Partnership Act, 2008, which limits the liability of a partner from the joint liability of a partner’s decision or misconduct.

You can consult a lawyer or a CA who can advise you based on your requirements.

Advocate Vijay Belavadi LawRato