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Startups often need to borrow funds or purchase on credit. In a traditional partnership, if the business fails to repay its debts, the personal savings and assets of the partners are at risk.
Private limited company is popular and well known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Private Limited Company instead of proprietorship or normal partnerships.
Pvt. Ltd. company enjoys wide options to raise funds through bank loans, Angel Investors, Venture Capitalists, in comparison to LLPs and OPCs.
Investors love to invest in Private Limited companies as it is well structured and less strings attached. Most important it is very easy to exit from a private limited company.
For startups putting together a team and keeping them for long time is a challenge, due to confidence attached to private limited structure.
Private Ltd. is easy to sell, very less documentation and cost is involved in selling a Pvt. Ltd. company.
To help you get started with confidence, we've compiled answers to the most frequently asked questions about Private Limited Company registration. These FAQs will give you clear insights into every step and empower you to take the first step toward building your business.
A Private Limited Company requires a minimum of two directors, two shareholders, and one Indian resident director, as per the Companies Act, 2013.
Yes, a Private Limited Company can operate multiple businesses, provided all activities are listed in the Memorandum of Association (MoA) and approved by the Registrar of Companies (RoC).
Yes, a residential address can be used as the registered office during incorporation, but it will be used for all official communications.
The entire process typically takes 10 to 15 working days, subject to MCA approval and document accuracy.