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Limited Liability Protection to Directors personal assets

Many times startups need to borrow money and take things on credit. In case of normal Partnerships, Partners personal savings and property would be at risk incase business is not able to repay its loans. In a private limited company, only investment in business is lost, personal assets of the directors are safe.



Better image and credibility in Market

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.


Easy to raise funds and loans

Pvt. Ltd. company enjoys wide options to raise funds through bank loans, Angel Investors, Venture Capitalists, in comparison to LLPs and OPCs.


Favorite business structure for investors

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.


Easy to attract employees

For startups putting together a team and keeping them for long time is a challenge, due to confidence attached to private limited structure, it is easy to hire people as well motivate them with corporate designations and stock options.


Easy to sell

Private Ltd. is easy to sell, very less documentation and cost is involved in selling a Pvt. Ltd. company.




Name is an Identity or title by which your business is referred to. In an Industry, there cannot be two companies with same or similar name. Eg.: There cannot be two companies with the name QUALCON in Construction Industry.

Name of the company must be unique and should not be similar to already Incorporated Companies or Trademark. It is advisable not to copy a popular company name or popular word (Generic word) in Industry in which you will be operating. For more details, please fill the above details.

Company name should be in 3 Parts.
Part 1: Keyword – This will be your brand name
Part 2: Business Activity word – Shows main business of your startup
Part 3: Structure word – Shows type of company, whether it is Pvt. Ltd./LLP/OPC Pvt. Ltd
Approval of name depends upon the Keyword and Business Activity word. Mostly Keyword should not be similar to any existing Company or Trademark in the same Industry.

Detailed name search is important before filing Incorporation documents. The Rules for name of company must be followed, otherwise it will delay the Incorporation process or lead to rejection of the application.

Company name search is done in MCA database and Trademark database. Both these search needs some level of legal expertise.

The Registrar of Companies (ROC) is the Government office, authorized to approve the name. ROC is an office under the Ministry of Corporate Affairs (MCA).
Every State in India has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai & Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad and so on.

The Company name check is to be done once all company incorporation documents are handy and the Company is ready to draft and file its Incorporation documents. Name search anytime before that may have the risk of name taken by somebody else during the document preparation time.

Pvt. Ltd. Company must end with words “Private Limited”. The MCA Rules for name approval is same for Pvt. Ltd. or LLP or One Person company. One cannot apply for name for Private Limited Company if the same name is already taken for an LLP.

One Person Company must end with words “OPC Private Limited”.

Limited Liability Partnership must end with words “LLP”.