Explained: Advantages of Pvt. Ltd. Company in India [Whiteboard Friday]

Private Limited Company is considered to be one of the best option for starting a business in India. In this episode of eLagaan Whiteboard Friday, the eLagaan team explains the major advantages of choosing Private Limited Company (Pvt. Ltd) as the business type for your startup or upcoming venture.

The video talks about the advantages of registering a Pvt. Ltd. Company can be a huge advantage over a sole proprietorship, general partnership or LLP. It talks about its limited liability, flexibility as well as broader brand recognition as some of the advantages.

Also this form of business can be 100% owned by not only resident Indians, but also NRI, Foreigners (Foreign passport holders) or international companies. It allows access toFDI (foreign direct investment) in you firm. It also allows founders to issue stock options to board of directors, mentors, investors as well as ESOP to employees (as employers).

We encourage you to look at some of the other business types (we have discussed in other eLagaan Whiteboard Friday videos) before settling down on any particular business type.
Also, for those who are wondering about One-Person Company bill, it has not been cleared by Rajya Sabha yet.
Recommended link : All about company incorporation in India.