Private limited Company Registration

ABOUT

What is a private limited company?

Private limited company is a perfect start for anyone who wants to start their business to give it a separate legal identity. Private limited company can be formed with ease and its procedural compliance are also easy when compared to that of a public company.

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.

how it work

What are the Features of Private Limited Company ?

Members

To start a company, a minimum number of 2 members are required and a maximum number of 200 members as per the provisions of the companies act 2013.

Prospectus

The private companies need not issue prospectus or file statement in lieu of prospectus with the Registrar of Companies.

Deposits cannot be accepted

Company cannot appeal for money from the public .There are also some restrictions on the sale or transfer of its shares by the shareholders.

Fund Raising Capacity

It is the only form of business other than public limited company to raise fund from the Venture Capitalist or Angel investors. It cannot go to public like other big companies.

Protection Against Liabilities

if the company became insolvent the investment in the company would be lost but the shareholders would not be pursued for any shortfall to pay creditors unless they were proved to have acted recklessly.

Limited Liability

This is perhaps the most important feature of Private Limited Company. Imagine a scenario, where someone filed a claim against you more than your business assets. In such a case, your personal assets can also be bought and sold to pay the debt.

Number of Directors

As per the Act of 2013, a Private Limited Company needs to have at least 2 directors. Although they are not required to appoint any independent directors.

Minimum subscription

Company receives the amount which is 90% of the shares issued within a certain period of time. In case the company if the company is not able to receive 90% of the amount then they cannot commence further business.

Facts

Our Advantages

Min 2 Shareholders

A private limited company can be started off with just two members who will be the shareholders and directors.

Borrowing Capacity

Companies enjoy better avenues for borrowing of funds when compared to other forms of business such as sole proprietorship and partnership.

Business Continuity

A company enjoys perpetual existence unlike other forms of business i.e.,the company continues to exist irrespective of the status of the owner.

Minimum Capital requied

Minimum capital required to incorporate a private limited company is one lakh.

Limited Liability

Personal assets of the shareholders will not be at risk, in the event of the company facing financial distress. Liability of the shareholder is limited to the unpaid amount on his shareholdi

Separate Legal entity

A company enjoys separate legal identity unlike partnership firms.

Partnership Firm

Disadvantages

Unlimited liability

Limited liability concept does not apply in case of a partnership firm. All the partners are jointly and severally liable for the liabilities of the firm.

Lead to dissolution

A partnership firm does not exist for an indefinite period of time. The death, insolvency or lunacy of a partner may lead to dissolution of the partnership firm.

Limited number of partners

Due to the limited number of partners there is flexibility in the operations of business as the partners can amend any objectives or change any operations any time by mutual consent.

Cannot access public funds

A partnership firm cannot invite funds from public.

Separate legal status

A partnership firm does not have a separate legal status i.e., a firm cannot own property.

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What is the

Documents required

What are the Documents required for Formation of Pvt. Ltd. Company Registration Online?

PAN card and Residence Proof of directors of the company
Copy of Rental Agreement / EB Card Copy of Registerd Office
Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
passport-size photograph
Specimen signature (blank document with signature [directors only])
copy of Passport (In case of Foreign Director)

What Includes in this package?

Verification of Documents
DSC and DIN for 2 Directors
Name approval and ROC feesl
Drafting MOA & AOA
Following until Certificate is allotted
Applying PAN & TAN

What is the Process

for Partnership Firm Registration Online ?

Applying DIN&DSC

DSC and DIN for all directors are required.

Name Approval

4-6 proposed names should be provided that should be unique and suggestive of company business.

MOA,AOA&AFFIDAVIT

Memorandum and Articles of Assocication should be drafted. Affidavit and declaration by first subscribers and Directors should be prepared

Company Registered

Once the application is duly filed and accepted by ROC, certificate of incorporation is issued and the company is all set to start it’s operations.

Apply for PAN, TAN and Bank accounts

Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with a bank to open your bank account.

Frequently Asked Questions (FAQ)

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What are the requirements to be a director?

Any person above 18 years can become a director. Non-residents can also become director of Indian companies.

What are the documents required for registration?

ID proof and residence proof of all the proposed directors, PAN card is mandatory for Indian nationals. No objection certificate from the owner of registered office or lease agreement must be produced.

What is a digital signature certificate (DSC)?

Digital signature is process to authenticate and validate records electronically. DSC is required for every director of the company as the Ministry of Corporate Affairs (MCA) mandates digital signature of directors on some documents.

What is authorized capital fee?

Authorized capital of a Company is the amount of shares a company can issue to its shareholders. Companies have to pay authorized capital fee to the government so as to be able to issue shares. Companies have to pay authorized capital fee for a minimum of Rs.1 lakh.

What is the law of partnersip?

Yes, a foreign national can become director of a private limited company. Atleast one director in a company should be resident Indian.

Can NRIs or foreign nationals hold shares of a Pvt Ltd?

Yes, a foreign national can become director of a private limited company. Atleast one director in a company should be resident Indian.

Can a partnership firm be converted into private limited company?

Yes, a partnership firm can be converted into private limited company by following the procedure laid down in Companies Act 2013.

How many directors can be appointed?

A private limited company must have a minimum of 2 directors while the maximum no. of directors can be upto 15.

What are the requirements with regard to the company’s name?

Company’s proposed name should be unique i.e., it should not be identical to any existing name. Names that infringe others’ rights, trademarks or patents are likely to be rejected by ROC

What is Director Identification Number (DIN)?

DIN is a unique identification number which is allotted to all the directors existing or proposed. DIN can be obtained by filing e-form DIN1 in MCA portal.

What are the statutory compliances required for a Pvt Ltd ?

Every private limited company must hold a board meeting atleast once in every three months and an Annual general meeting (AGM) every year.

Can a private limited company be later converted into public Ltd?

Yes, Companies Act 2013 provides rules for converting a private limited company into a public limited company.