What are the Privileges of a Private Limited Company?

privileges of private company

What are the Privileges of a Private Limited Company?

Sep 12, 2020 Company by admin

A private limited company is the business entity of choice for most businesses in India, and for a good reason. Not only, it does separate the business from the businessmen, it also provides a good structure to the trade – prepping it to become successful. India is a socialist country, providing several benefits to those who want to do commerce. Thus, the privileges of a private limited company in India are beyond standard benefits, for they provide a good vehicle to companies to not only create a successful business, but a country social contributor as well.

Special Powers that are Given to a Private Limited Company

When we talk about privileges of a Private limited company, we think about the separation of the trade and the trader, the limited liability and such, what we don’t talk about are the special privileges. Such special powers empower a company to stand tall among the old businesses while retaining their original identity:

  1. Pay Zero government cost for registration: Starting a company can be a daunting thing to think about. The costs surrounding it were so large once upon a time that the word “entrepreneur” was an unknown. Not anymore. Nowadays, if you don’t have a capital to invest in your business at the moment, nothing can stop you from starting a private limited company. Moreover, the government cost of starting such a company is NIL. Yes, you only need to be a small professional fee to get your company going.
  2. Start business as soon as you incorporate a private limited company: One of the greatest powers that the government gives to a private limited company is to start business immediately. If you’ve some capital invested in your company, you don’t need to wait after incorporation to do business, you can start earning right away.
  3. Relax from the need to publish a prospectus: A private limited company is called “private” because no one, other than the members, and the Ministry of Corporate Affairs knows about its internal financial conditions. Therefore, a private limited company doesn’t need to publish a yearly prospectus, informing the general public about its financial affairs. For a budding entrepreneur, it’s almost natural to stumble at the start. Being able to self-assess their business, such entrepreneur can make changes on his/her own terms, without the judgemental eyes of the public.
  4. Pay less to get IP registration services: As a private limited company, you don’t have to pay the applicable amount to get your patent or trademark registered. If you have startup registration certificate, the cost of such IP registration services is reduced by half.
  5. File the application of private limited company registration online: Perhaps the greatest privilege of a private limited company is your ability to register it online. Private limited company registration online India is a method that allows you to easily register your company with a click of a few buttons.


Being able to establish your own business is a privilege, but having such a business registered as a private limited company is a bigger privilege. In this article, you’ve seen how a private limited company is able to swiftly start its business without any interruption while enjoying low cost IP Registration services, zero cost company registration services, and a confidential prospectus. Such a company can do wonders for a growing entrepreneur.

Get the privilege to do business freely by registering a company with the help of Regalguru.