PRIVATE LIMITED COMPANY
@ Rs 6999 All Inclusive No Hidden Charge
*Stamp Duty Extra For Madhya Pradesh, Punjab & Kerala
A private limited company is best for a start-up business. Minimum 2 persons can start their business with no minimum capital requirement and have limited liability towards company debt.
WHAT IS PRIVATE LIMITED COMPANY?
A business entity registered with the Ministry of Corporate Affairs under companies act. It is the most popular business structure in India as it has many advantages and easy to operate. It is the best option to start the business as the owner and directors of the company has limited liability, and they are not personally liable to any debt and losses owned by the company as the company and management of the company is different from each other. Any business activity can start under the private limited company format, but it should be a legal activity. As per new rules of registration, it gets effortless to register the company by following the simple registration process.
What Do You Get In Private Limited Company
Documents Required For Private Limited Company Registration
Process Of Private Limited Company Registration
- Submit Documents
- Name Approval
- Digital Signature
- Documents Preparation
- Company Incorporation
You need to submit all the required documents.
We will verify all the documents and then apply for the name approval through the RUN application form. In one form we can apply for 4 names. Name of the company is subject to Government approval.
After the name approval of the company, we will apply for the Digital Signature. For Digital Signature Video Verification will be required.
After Name approval and Digital signature, we will draft Memorandum of Association, Article of Association and subscription statement of your company and will submit it to the Registrar of Companies with prescribed e-form Spice 32. We will apply for PAN and TAN application simultaneously.
Once all the documents submitted are duly verified by Registrar of Companies, the approval is given and the Certificate of Incorporation is sent to you on your email id.
More About Private Limited Company
Shareholders: At the time of incorporation minimum of two people are required. However, maximum 200 persons can be the shareholders in the company. Shareholders are the real owners of the company. They invest their funds and money to start the company as well as to run its business activities. A company needs directors to run its operations, and for that, the shareholder can act as director of the company. Generally, shareholders didn't take part in the business activity that's why they need directors to run its functions. However, the shareholders play a vital role in the company as the directors cannot take any significant decision without the prior consent of the shareholders.
Directors: A private limited company must have a minimum number of two directors to register, and each of them should have the director identification number, given by the MCA. Also one of them must be a resident of India that is the director must have lived in India, not less than 182 days in the preceding calendar year. A director looks after the company and handles all the business activities on behalf of the shareholders, and he always operates his function for the interest of the company as well as for all the stakeholders. He is not the owner of the company, and he only runs the company.
Company Name: A name is an essential part of life either it is for the individual or any body-corporate. The very first step for company registration is name approval. No one can incorporate a company without a name. The name is the identity of the company. The company must have its name along with its business activity, and at the end, there should be a word “private limited” in the style of either “Private Limited or Pvt. Ltd. or (P) Ltd.”. E.g., XYZ Legal Consultancy Private Limited, where XYZ is the name of the company and Legal Consultancy is the business activity, and private limited is the status of the company.
Company Address: A company must have its registered office address, and it shall register with the Registrar of the Companies. The registered office means a working place of the company, and it should mention in all documents of the company. Also, the company will receive its all the documents and notices at its registered office
Company capital: Earlier under companies act, 1956 the company needs to comply with the minimum capital requirement which was Rs. 1,00,000/- but under companies act, 2013 the minimum capital requirement get abolished, and now there is no minimum capital requirement for registering the company.
Ownership: The shareholders are the real and true owner of the company. They hold shares and invest their funds in the company. In the public limited company, there is no limit on the number of shareholders, but in a private limited company, the limit of the shareholders is restricted to 200 persons during the whole life of the company. In the public limited company, anyone can become the shareholder of the company and the same concepts lies in the private limited company but the number of people shall be under the limit of 200.
Easy to maintain: As compared to the public limited company it is effortless to manage the private limited company as there is no interference of the general public. The decision making power lies on a small group of a person due to which it becomes easy to run the operations of the company.
Limited liability: Limited liabilities means the obligation of the shareholders restricted to a certain point. It says that the shareholders of the company shall not be personally liable for any debt or loss incurred by the company during its life. The shareholders are responsible for providing only such amount which they agreed to contribute as mentioned in the memorandum of the company. No other liability shall arise during the life of the company which the shareholders need to fulfill
Perpetual succession: There is no lifeline of the registered company. The company cannot die the members come and go, but the company goes until it gets wind up as per law. The validity of the company cannot get affected by the death of the member or the directors as some other person can replace their positions, but the company remains the same.
Confidentiality: As there is a restriction on public involvement there is very less chance for the leakage of confidential information in the market. The confidential information like the internal information, executive management details, market strategy, and the other details can be preserved as a small group of persons operates it, so it is effortless to keep all these information confidential.
Fewer compliances: As compared to the public limited company the private limited company has to comply with fewer government norms and procedure. The primary objective of the government is to protect the public interest and in private limited company. There is a restriction on public involvement, so there are so many rules under which the private limited company gets an exemption, and few are:
- Don’t need to comply with SEBI guidelines
- Don't need to register itself with the stock exchange
- Don't require to adhere to the provision of section 188 of the companies act, 2013 for related party transaction
- There are many other provisions under companies act, 2013 and other law where the private limited company get exemptions
Easy to raise fund: Due to legal identity it enjoys many advantages. The company can raise funds by issuing preference shares or debentures or can take deposits, etc., from its members and banks or financial institutions. The company has to follow all the guidelines or regulations framed by the government regarding issuing funds. That's why there is very less chance of default. The reliability of a private limited company is always more than a proprietorship firm or any firm
Sue or to be sued: The company is a legal entity so it is having full right to sue any person and a company also can be sued by any other person on its name.
Restriction on transfer of share: The shareholder of the company cannot transfer their shares to anyone without the prior consent of the shareholders of the company as the first right to get the shares of the company lies with the existing shareholders of the company.
Restriction on trading of shares: The company cannot trade its shares like a public limited company. The public participation is restricted under the private limited company hence the shares of the private limited company is not available in the market for trading.
Compliances: The private limited company also have to follow the procedure of certain compliances whether post incorporation compliances or other compliances mandatorily whether the company is in profit or not or whether it is operating or not. The company needs to hold the Annual General Meeting once every year and also have to mandatorily file the annual return and financial statement to the registrar every year. The company also needs to maintain its books and register and also have to preserve them. The company needs to intimate about each, and every change happened in the company to the registrar after obtaining proper consent of shareholder and board of the company.
Taxable liability: There is no slab rate concept for the company and the company has to pay a flat 30% of its profit as an income tax. It is mandatory for every type of company to pay 30% tax every year whether the annual profit is Rs. 10,000/- or Rs. 1,00,000/-.
The closing of the company: No one can directly close the company once it gets registered. There is a proper procedure prescribed under the law for closing the company. Before settling the company, there is a particular requirement which has to comply. It is not easy to close the company without professional guidance, so it is better to consent with the professional regarding the closure of the company.
Let our experience be your guide