Private Limited Company

Introduction

A Private Limited Company is the most popular type of corporate entity in India. Application for registration in prescribed format will be submitted before Registrar of Companies (under Ministry of Corporate Affairs) thereafter Registrar issue a Certificate of Incorporation.

Formation of company

A company may be formed for any lawful purpose by two or more persons, where the company to be formed is to be a private company;

A company formed may be either—

(a) a company limited by shares; or

(b) a company limited by guarantee; or

Characteristics of Private Limited Company

Members– To start a company, minimum number of 2 members is required and a maximum number of 200 members as per the provisions of the Companies Act, 2013.

Limited Liability– The liability of each member or shareholders is limited. It means that if a company faces loss under any circumstances then its shareholders are not liable to sell their own assets for payment. Thus, the personal, individual assets of the shareholders are not at risk.

Perpetual succession– The company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its members. This leads to perpetual succession of the company.

Life– The life of the company keeps on existing forever.

Index of members– A private company has a privilege over the public company as they don’t have to keep an index of its members since the number of members is less than 50 generally in these companies whereas the public company is required to maintain an index of its members, as generally such companies have the number of members in hundreds and thousands and so on. In short, the maintenance of index is not necessary where the number of members is less than fifty.

A number of directors– When it comes to directors, a private company need to have only two directors. With the existence of 2 directors, a private company can come into existence and can start with its operations.

Paid up capital– There is no minimum capital requirement as par law but minimum 1 lakh is required.

Prospectus– Prospectus is a detailed statement of the company affairs which is issued by a company for its public. However, in the case of private limited company, there is no such need to issue a prospectus because in this type of companies, public is not invited to subscribe for the shares of the company.

Minimum subscription– It is the amount to be received by the company on the shares to be issued within a certain period of time. If the company is not able to receive such amount then they cannot commence further business. In case of private limited company shares can be allotted without receiving the amount of such minimum subscription since such amount is required to be stated in the prospectus which is not applicable and required in the case of private companies.

Name– A unique name with for all the private companies to use the word “private limited” after its name. The Ministry of Corporate Affairs will be the final authority to approve the name based on the availability rules and regulations.

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 a NOC is obtained from the landlord.

Have separate legal entity?

Yes

Minimum requirements to establish

- Suitable Name with suffix Pvt Ltd Co.

- Minimum 2 members as shareholders

- Minimum Capital not specify but in general 1 lakh or as per the state

- Memorandum & Article of company

Name of Company

Founder or shareholders in a meeting of Private Limited Company has right to choose any name except some names which are restricted as per the Emblems and Names (Prevention of Improper use) Act, 1950.

Minimum Capital Required

Minimum Capital not specify but in general 1 lakh or as per the state

Minimum & Maximum members required

Minimum 2 people called Share-holders

Maximum 200 people called Share-holders

Appoint minimum 2 directors

Transfer to other

Any shareholder has right to transfer his/her share to others or legal hairs

Registration required

Yes, this is mandatory to registration in the Companies Act

PAN of the company is mandatory to filing company returns

Registration optional

Applicable some other registration-

- in Shop and Establishment act from the Municipal Corporation

- in GST if applicable by your turnover from the GST portal

- in PF & ESI from Provident Fund & Employees State Insurance Corporation

- in Fire Safety from Fire Department

- in FSSI as FSSI license etc

Required documents to starting business

- PAN of shareholders

- Aadhar of shareholders

- Passportsize photograph

Bank Account

Open a bank current account just after registration of the company. Every transaction will be made through company’s account instead of personal bank account.

For the opening of bank account following document required-

- A copy of Memorandum & Article of association (company)

- Incorporation Certificate of Company

- Minutes of the company

- Directors authority

- Directors PAN & Aadhar

Winding up

Once company is incorporated that will be not easy to winding up. Companies Act already prescribed the procedure of winding up.

Start your business within 3 days, we are ready to assist you

Days	Step	Process
Day 1	Step 1	Discussed with necessary formalities, registration process and minimum requirements
	Step 2	Apply and collect DSC (Digital Signature Certificate) of directors
	Step 3	Apply and allotment of DIN (Directors Identification Number)
Day 2	Step 4	Check availability and apply for approval of the name of company (The Ministry of Corporate Affairs will be the final authority to approve the name based on the availability rules and regulations)
	Step 5	Draft Memorandum & Article of company
	Step 6	Approval of Name from MCA
Day 3	Step 8	Final Memorandum & Article of company
Day 3	Step 9	Apply for registration with required documents
Start	Step 10	Collect the Certificate of Incorporation

Our experts will provides full assistance and professional guidance on many of the processes involved in registering your business, GST, import/export code, PF/ESI or Shops and Establishments License, draft any deed, accounting method, returns formalities & filing etc.

>> Start Your Pvt Ltd Co. with registration at Rs. 9,999/- only << --- LEGAL SAFE ---

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