What is Private limited company?
Private Limited Company registration is the most popular legal structure option for businesses in India. A private limited company can have a minimum of two members and a maximum of fifty members. The directors of a private limited company have limited liability to creditors. In a case of default, banks/creditors can only sell company’s assets but not personal assets of directors. If you want to start a company in India then make sure your company is registered as Company Registration should be your first priority. It is very important to register your company as a registered company have multiple advantages from easy to register to easy to dissolve.
Start-ups and growing companies prefer private limited company as it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent.
Features of Private Limited Company
There are many of the features of a Private Limited Company are like:
- Members– To begin an organization, a base number of 2 Individuals are required and the greatest number of 200 Individuals according to the arrangements of the Companies Act, 2013.
- Constrained Liability– The risk of every part or investors is restricted. It implies that if an organization faces misfortune under any conditions then its investors are at risk to offer their benefits for installment. The Individual, singular resources of the Investors are not in danger.
- Never-ending succession– The organization continues existing according to the law even on account of Death, Indebtedness, and Liquidation of any of its Individuals. This prompts the unending progression of the organization. The life of the organization continues existing until the end of time.
- List of members– A privately owned business has a benefit as compared to general population organization that they don’t need to keep a file of its employees through the general population organization required to keep a list of its employees.
- 5. Various Directors– When it comes to chiefs a privately-owned business needs just 2 executives. With the presence of 2 chiefs, a privately-owned business can come into tasks.
- Paid-up capital– It must have a base paid-up capital of Rs 1 lakh or such higher sum which might be recommended every once in a while.
- Prospectus– Prospectus is a definite proclamation of the organization issues which is issued by an organization for its open. In any case, on account of the private constrained organization, there is no such need to issue an outline because in this open isn’t welcome to buy-in for the offers of the organization.
- Least subscription– It is the sum which gets by the organization. It’s 90% of the offers issued inside a specific time frame. If the organization can’t get 90% of the sum then they can’t initiate assist business. If there should be an occurrence of private restricted organization which can be apportioned to people in general without getting the base membership.
- Name– It is obligatory for all the privately-owned businesses to utilize the word private restricted after its name.
Documents required to register a Private Limited Company
- PAN Card-PAN Card of shareholders and Directors. Foreign nationals must provide a valid passport.
- Identity Proof-Aadhar card and Voter ID/ Passport/ Driving License of Shareholders and Directors.
- Director’s Address Proof-Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.
- Photograph-Latest Passport size photograph of Shareholders and Directors.
- Business Address Proof-Latest Electricity Bill/ Telephone Bill of the registered office address
- NOC from owner-No Objection Certificate to be obtained from the owner(s) of registered office
- Rent Agreement-Rent Agreement of the registered office should be provided if any
NOTE-In case of NRI or Foreign National, documents of director (s) must be notarized or apostilled
Formulation of Company Name
- Unique Name-Mainly it builds the company brand and preferably be a coined word
- Business Object-The second part of the name should suggest the business activity of the company
- Constitution Type-Name of the company must end with “Private Limited” as a suffix
Process of Company Registration in 5 Easy Steps
There are the following 5 easy steps of company registration like;
- Application of DSC & DPIN.
- Name Approval.
- MOA & AOA Submission.
- Get Incorporation.
- Apply For PAN, TAN and Bank Account