Private Limited Company
“A Private Limited is a company which is privately held for small and medium businesses. The liability of the members of a Pvt Ltd Company is limited to the number of shares respectively held by them in the company. Shares of Pvt Ltd Company can’t be traded publicly.”
Advantage
Incorporation of a private limited company is very much efficient and advantageous due to the below-mentioned reason.
Management and decision making
Decision-making and Management become more confusing and complex in public companies as more shareholders need to be consulted or considered. This procedure is eliminated in the private limited company because there are fewer shareholders.
Starting from INR,9499/-
( inclusive of all taxes )*
Requirement to incorporate a Private limited company
A minimum number of two and a maximum number of 200 members or shareholders are required as per the companies act 2013 before the registration of the company.
For registering the private limited company, minimum two numbers of directors are required. Each of the directors should have a director identification number which is given by the ministry of corporate affairs. One of the directors must be a resident of India and should have stayed in India for not less than 182 days in a previous calendar year.
One of the major components of a Pvt Ltd company. The name of the company contains three parts the activity, the name and the type of company. It is compulsory for all private companies to use the word Pvt ltd at the end of their company name. For the registration of the company every company has to send 5-6 names for approval and all the names should be expressive and unique. The name should not match any other company’s name. So choosing the right company name is important because it will stay with the company throughout its life.
While registering the company, the owner should provide the temporary address for the company until it does not gets registered. However when the company got registered then the permanent address of its registered office should be suited to the registerof the company. The registered or permanent office of the company is where companies where all the documents are placed and main affairs are been conducted.
In today’s world, everything is happening online. Every company must have a digital signature certificate because all documents are submitted electronically, which is used to verify the document’s authenticity. A digital signature is obtained by all the directors which is marked on all the documents of every director of the company.
Documents required for One person company
- PAN card of the company
- Registration Certificate of the company
- Memorandum of Association (MOA) /Articles of Association (AOA)
- PAN card, photograph, and aadhar card are required for all Directors
- Bank details- a copy of the cancelled cheque or bank statement
- Address proof of Principal place of business and all places of business:-
- Propriter office – Copy of electricity bill/landline bill/ water bill/ municipal khata copy/ property tax receipt
- Rented office – Rent agreement and No objection certificate from the owner
- Proof of appointment of authorized signatory- letter of authority
▪ Documents required for HUF
- PAN card of HUF
- Photograph, Pan Card, and adhar card of Karta
- Address proof of Principal place of business and all places of business:
- Propriter office – Copy of electricity bill/landline bill/ water bill/ municipal khata copy/ property tax receipt
- Rented office – Rent agreement and No objection certificate from the owner.
- Bank information- a copy of the cancelled cheque or bank statement
FAQ
A Private Limited Company has a minimum of two directors and two members. The maximum number of members that a Private Limited Company can have is 200. The total capital of such a company is formed with shares and every shareholder is a partner. Directors of a Pvt Limited Company should meet at regular intervals and all its transactions should be audited. The name of such a company ends with the words ‘Private Limited’.
For being, Director needs to have more than 18 years of age and he should be a natural person. There are no limitations in terms of citizenship or residency. Therefore, foreign nationals can be Directors in an Indian Private Limited Company.
The minimum authorized capital of Indian Rupees 100,000 is required to form a private company in India. There is no upper limit.
The Ministry of Corporate Affairs, Government of India issues an identification number to a Director or a prospective Director of a Company that is DIN, Directors Identification Number. The concept of DIN was introduced for the first time when Sections 266A and 266G were inserted in the Companies Act.
To get a DIN, you need to make an online application process to the Ministry of Corporate Affairs and submit your required documents and information related to Address Proof and Identity. Once the Ministry verifies these documents, the DIN will be allotted to the person.
DSC stands for Digital Signature certificate. DSC has the digital equivalence of certificates or physical papers. It is needed to fill out the form electronically with the concerned department.DSC of one of the Directors is required for the Registration of a private company.
Yes, the process can be expedited if all the paperwork is signed and authenticated faster, and the proposed name of the Private Limited Company is very unique. Names that are similar to an existing private limited company / limited liability partnership/trademark can be rejected and additional time will be required for the resubmission of names.
We can incorporate a Private Limited Company in India within a week after the receipt of all the documents. The time taken for registration of the company will depend on the speed of Government Approvals and the submission of relevant documents by the client. For speedy registration, Do have a unique name for your Company and before starting the registration process ensure that you have all the required documents.
Once a Company is registered, it will be active as long as the annual compliances are met regularly. If annual compliances are not complied with, the Company will become a Dormant Company and may be struck off from the register after a period of time. We can revive A struck-off Company within a period of up to 20 years.
AOA stands for Articles of Association and MOA means for Memorandum of Association. These documents act as an important source of information for several shareholders and other stakeholders that are associated with a Company.
MOA reveals the name, aims, objectives, registered office address, the clause regarding limited liability, minimum paid-up capital and share capital of a Company. In short, it shows the relationship of a Company with the outside world.
AOAs are the compulsory documents that need to be submitted while the company is incorporated with the register of Companies. The Constitution of the Company is called When AOAs are in conjunction with the MOA.
Yes, a Foreign National or an NRI Foreign company can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.
Yes, an NRI or Foreign National can be a Director in a Pvt Ltd Company in India after obtaining Director Identification Number (DIN). But, at least one Director on the Board of the company must be a Resident of India or a citizen of India.
A private limited company must hold a Board Meeting at least once every 3 months. Apart from the Board Meetings, at least once every year an Annual General Meeting must be conducted by the Pvt Ltd Company.
