Private Limited Company Registration Vs. Public Limited Company Registration

A private limited company is governed under the MCA {Ministry of Corporate Affairs}. You can easily do private limited company registration online. In order to register a company, you need at least 2 people to act as shareholders and directors.

Documents Required

Here are some documents that you need to submit.

• PAN card copy of the director of your company
• Address proof of the direction of the company
• Residential proof should also include the director’s name
• Other than providing address, identity, and residential address proof, you also need to provide registered office proof.

Benefits of Private Ltd Company

Limited Liability

When your business sees an unexpected crisis and is on the verge of shutting down, the shareholders do not have to face any risk of losing assets. The amount that was invested in the business will only be lost and the assets of the director are safe too.

Greater Credibility

You need to make some information about the operations, financials, and structure, accessible to the Registrar of the companies. The information will be in the public domain. Thus, the lenders, employees, and vendors can find the information that is pertinent to the company like registered office, name of directors, the authorized capital, etc. The information makes your business more credible compared to the ones that do not furnish this particular information.

Public Ltd Company

Public limited company registration is ideal for anyone who is thinking of large-scale business operations. In order to register your company as a public limited company, you need to have at least 7 members and there’s no actual limit on the number of shareholders or members for establishing a public ltd company.

Documents Required

It is significant to present all the required documents mentioned below to avoid future legal compilations.

• Copies of identity documents of the directors
• Passport size photos of the directors
• Digital signature certificate [DSC] of the Directors
• Direction identification number [DIN] of the directors
• Rental agreement if the office is on rent
• Property ownership documents if the office is in the possession of the business
• Electricity bill and water bill
• NOC from landlord [No objection certificate]
• MOA [Memorandum of association]
• AOA [Articles of association]

Benefits of Public Ltd Company

Individual Legal Entity

A public limited company can be considered as an individual legal entity. The company has an everlasting existence and can have its bank account, PAN, contracts, approvals, contracts, assets, licenses, and liabilities.

Various Funding Avenues

When you opt for public limited company registration, you can raise funds from people and banks, and other financial institutions. You can raise funds in preference shareholding, equity shareholding, or debentures too.

Easy Share Transferability

This is one of the major benefits of a Public Limited Company. You can easily transfer the shares to other legal entities; a person or an organization abroad or in India. The company director can be changed for guaranteeing the business perpetuity.

Verdict

Private limited company registration can accommodate the equity funding easily since there is a difference between the directors and the shareholders. Private equity funds and venture capitalists are likely to invest in any structure. Since the public company has a huge capital base, the openings for development are huge too, especially in the case of an open constrained business.