Private Limited Company Registration
Private Limited Company Registration Simplified, Easily and Fast with VenueTax | Kolhapur
Private Limited Company Registration
A private limited company, or LTD, is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares. 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. you need to do is register the directors with Ministry of Corporate Affairs (MCA), register the name of the company and submit the company incorporation documents, such as Memorandum of Association and Articles of Association. A private limited company has a minimum of two members and a maximum of 200 members.
Almost 93 percent of the companies incorporated in India are registered as Private Limited Companies.
Ministry of Corporate Affairs is the governing body in India which regulates all Private Limited Companies in India. The Companies Act of India is now called as Companies Act, 2013.
Earlier, the shareholders had to pay a minimum of ₹ 1 lakh as a subscription amount to incorporate a private limited company. Now, there is no such requirement.
- A Private Limited Company is a Company which has a Minimum of Two members and a Maximum of 200 Members. To calculate members, present and past employees are excluded. A Private Limited Company can not invite general public to subscribe its securities.
- A Private Limited Company offers Limited Liability or Legal Protection for its Shareholders.
- A Private Limited Company lies between a partnership and widely owned public company.
- A Private Limited Company is identified by the company name, number of members, formation, directors, meetings, shares, etc.
- A Private Limited Company is “Limited by Shares” i.e. there are shareholders associated with the company and the theoretical value of the shares & any paid in return for the issue of shares by the corporation is limited to the capital which is initially invested.
A Private limited company is the most popular corporate entity among small, medium and large businesses in India due to various advantages.
- Ideal for Startups & Growing Business
- Easy to Get Funding, Raise Venture Capital Fund
- Has Limited Liability
Private Limited Companies are the most preferred option for any startup that is looking at scaling up by external funding as it is very easy in Private Limited Company to issue fresh equity shares in lieu of funding received.
A Private Limited Company is recommended for any business that is considering FDI or Employee Stock Options or Equity funding or Venture Capital funding.
Private limited company offers its promoters a better image or standing than that of a LLP. Private limited company also enjoys better access to funding from banks and foreign direct investment.
A private company can start its business as soon as it is incorporated. Further You Can Register Your Private Limited on your residential address(No office set-up required).
Pvt. Ltd. Co. things to know:
A private limited company is a limited liability entity incorporated under Companies Act, 2013. It has a minimum of two directors (with a maximum of 15). A natural person can be a director and as well as shareholder, where a corporate legal entity can only be a shareholder. In addition to that, foreign nationals, foreign corporate entities or NRIs are also allowed to be the Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
Some of the unique features of a private limited company like the limited liability protection to shareholders, the ability to raise the equity funds, separate legal entity status and the perpetual existence make it one of the most recommended type of business entity for the millions of small and medium sized businesses that are owned by families or professionally managed.
at least:
TWO DIRECTORS:
A private limited company must have at least two directors, At most, there can be 15 directors. Of the directors in the business, at least one must be a resident of India.
MINIMUM CAPITAL CONTRIBUTION:
There is no minimum capital requirement for a company. A company should have an authorised capital of at least Rs. 1 lakh.
REGISTERED OFFICE:
The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, so long as an NoC is obtained from the landlord.
the whole process including approval of DIN, Name, and Incorporation takes around 7 working days. However, now-a-days registering a Company has become a fast process as all documents are dragged in a single application form with MCA. It is a big step towards e- governance and for businesses who are looking for expansion of operations.
Registration of Private Limited Company
- About This Package
We will assist you to get your business registered under the Companies Act. A private limited company, or LTD, is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.
- Steps Involved
- Obtain Digital Signature Certificate (DSC)
- Obtain DIN
- Name Availability
- Form SPICE INC-32
- MOA and AOA
- PAN and TAN Application
- Issued Certificate of Incorporation
- Documents Required
- Affidavit in prescribed format.
- Proof of office address – Rental Agreement
- Recent Electricity or Telephone Bill
- Copy of Name Approval
- Trademark registration certificate or trademark application copy (If applicable)
- NOC from the owner of the property
- Proof of identity and address proof of the subscribers not having DIN
- Copy of PAN Card
- Advantages of a Private Limited Company:
Businesses often need to borrow money. In structures such as General Partnership, partners are personally liable for all the debt raised. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In a private limited company, only the amount invested in starting the business would be lost; the directors’ personal property would be safe.
A Private Limited Company is legal entity and juristic person established under the Companies Act. Therefore, a company has a large range of legal capacities including that of opening of a bank account, hiring employees, taking on the equity or obtaining the licenses and more as an independent corporate entity. A member (Shareholders/Directors) of a company has no personal liability to the creditors of a company for company’s debts.
Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability. In fact, venture capitalists and private equity funds are unlikely to invest in any other structure. This is because LLPs would require them to become partners in the business, while an OPC can have only one shareholder. This feature also gives you the ability to hire top talent you may not be able to afford by merely paying a salary.
Companies in India are registered with the Registrar of companies(ROC) under Companies Act 2013. Anyone can check the details of the company through Ministry of Corporate Affairs (MCA). Also, details of all the directors are provided while the formation of the company. Hence a PLC form of business structure is trusted more.
A private limited company has more options for taking on debt than LLPs. Not only are bank loans easy to obtain (relative to OPCs and LLPs), the option of issuing debentures and convertible debentures are always available to it.
A Private Limited Company can raise the equity funds in India. The Companies can also issue equity shares, preference shares, debentures and accept the deposits with RBI permission. The Banks and Financial Institutions prefer to provide the funding to a company rather than the partnership firms or proprietary concerns.
A Private Limited Company has ‘perpetual succession’, that means, it has an uninterrupted existence until it is legally dissolved. As a company is a separate legal person, it is unaffected by death or other the departure of any member and it continues to be in existence irrespective of the changes in ownership.
The ownership of a business can be very easily transferred in a company by transferring the shares. The signing, transfer and filing of share transfer form and the share certificates is adequate to transfer the ownership of a company. In a private limited company, the consent of other shareholders may be required to effect share transfers
A Private Limited Company being an artificial person, can obtain, enjoy, own and alienate, property in its name. Property owned by a company may be building, machinery, intangible assets, land, residential property, factory, etc., No shareholder can stake a claim upon the property of the company – as long as the company is the going concern.
- General FAQ's
Yes, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
Stakeholders are requested to ensure that the proposed name selected does not contain any word as prohibited inSection 4(2) & (3) of the Companies Act, 2013 read with Rule 8 of the Companies (Incorporation) Rules, 2014.
Stakeholders are also requested to read and understand Rule 8 of the Companies (Incorporation) Rules, 2014 in respect of any proposed name before applying for the same.
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs or rupees and even lead to the blacklisting of directors.
But don’t worry VenueTax
CA assisted services are with you.
Any individual/organization can become a member of a private limited company including NRI/foreigners. Nonetheless, the individual must be 18+ above in terms of age and should hold a valid PAN card.
Yes, a salaried person can become the director in private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.
Any unlisted company/ private company that is eager to convert into a LLP needs to apply through Form 18 (Application and Statement for conversion of a private company/ unlisted public company into limited liability partnership (LLP). Form 17 needs to be filed along with the Form 2 (Incorporation document and Subscriber’s statement).
