Private Limited Company is the most preferred structure for businesses that plan to grow big, get investments by way of equity, wish to offer sharing of ownership with employees by way of ESOP, wish to get FDI, etc.
The major advantage of Private Limited structure is the segregation of management from ownership. Directors form the management of the company, and Shareholders are the owners of the company.
Shareholders holding the majority of shareholding will have the right to appoint directors and such appointed directors run the day-to-day management of the company and go back to the shareholder for approval for major decisions.
The registration process for the Pvt Ltd company starts with obtaining digital Signature (DSC) for the proposed directors and subscribers to initial capital.