Register a Private Limited Company

Overview

A Private Limited Company is a privately held business entity with limited liabilities, which is one of the most popular means to start a business in India. The Companies Act 2013 governs private limited company registration in India.

 

For anyone intending to raise funding for their business, a private limited company is the most preferred choice of entity. The prime reason for such preference is its feature that allows segregation of its ownership and operations. Investors can invest in your company by buying the shares and exit simply by selling them without being liable for the company affairs.
Founders and directors prefer it as they can run their business without the interference of their investors.

 

This form of entity can also get 100% Foreign Direct Investment (FDI) under the automatic route, where approval of Central Government is not required. Hence, it’s the most convenient form of entity in case of India entry strategy.

 

While, minimum 2 shareholders are required to start a private company, the higher limit of members are 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

 

For online company registration, there must be a least of 2 directors while maximum 15 directors can be appointed in a company. Proposed director must have attained age of 18 years. A foreign national can also become a director of private limited company in India.

 

There is no minimum paid-up capital required for a private limited company registration. Every private limited company must use “pvt.ltd.” after their name.

A private limited company has never-ending existence. A private limited company holds on existing even in the case of death or bankruptcy of its Members.

A private limited company does not have any relationship with the public; they aren’t permitted to ask for any collateral from the public or public sectors. In a private limited company, people are not entitled to transfer shares, which protect takeovers of private limited companies from big enterprises.

Benefits of Private Limited Company

EASE OF FORMATION

A Private Limited Company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. With Spice forms, this is the fastest way to register a company

 

SEPARATE LEGAL ENTITY

The biggest advantage of a Private Limited Company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.

 

PERPETUAL SUCCESSION

In case of death of the owner or transfer of shares, your business won’t get affected. There will be no effect on firm’s continuance.

 

LIMITED LIABILITY

The greatest benefit of Private Limited Company is limited liability. If any liability arise then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Stakeholders are not liable for corporate debts and liabilities

 

GREATER FLEXIBILITY

A Private Limited Company is required to perform lesser legal formalities as compared to a Public Limited Company. It enjoys special exemptions and privileges under the company law. Therefore, in Private Limited Company, less number of compliance is required.

 

SECRECY

A Private Limited Company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.

 

INVESTMENT

Flexibility to raise investments or loans from NRIs and Foreigners. Easy to raise investments and corporate loans

 

TRANSPARENCY

Private Limited Company enjoys enhanced transparency thus able to win the trust of general public.

 

MINIMUM COMPLIANCE

Private Limited Company enjoys enhanced transparency thus able to win the trust of general public.

What are the basic requirements of Online Private Limited Company Registration in India?

There are few requirements to be known before initiating a Private Limited Company in India;

• The private limited company must have a unique name which should not be the same as any other registered company and trademark.
• It is mandatory for a private limited company to have a minimum of two directors.
• As well as it is necessary to keep in mind that the private limited company should have minimum two shareholders.
  All directors & members of private limited company should have digital signature certificate which will be used to register a private limited company.
• There is no minimum capital required for initiating a private limited company.
  The process of online company registration is quite simple; make sure that you have a unique name for your company which will surely help you with quick company registration.
  You must avoid any offensive name for your private limited company registration

Documents Required for Private Limited Company

• Declaration by the subscribers and by the directors
• A confirmation for the address of the office
• Two months utility bills copy
• Certificate of incorporation of the Outer Country body corporate [If applicable]
• A resolution passed by the global Company [If applicable
• A recommendation declared by the promotional Company [If applicable]
• The interest of the directors from other entities [If applicable]
• Nominee’s assent
• Identity proof and residential address of the subscribers and the nominees
• Identity proof and residential address of Applicants
• The Declaration/Resolution of the unregistered companies
• DSC(Digital Signature Certificate)
• Any other document [If required]

Note:

Acceptable documents for ID Proof are:

• Voter ID
• Aadhaar Card
• Passport
• Electricity Bill
• Ration Card
• Telephone Bill
• Driving License

Acceptable documents for Address Proof are:

• Bank Statement
• Electricity Bill
• Mobile Bill

Our team is happy to assist you