Registration in Private Limited Company
In India, Private Limited Company or PLC is the most popular legal option of building a corporate entity for conducting businesses. It means that if you’re taking a small first step and thinking of a big leap in future, your correct choice is to register as Private Limited Company. Since, then you’ll be getting a number of good legal provisions.
Private Limited Company Registration in India - An Overview
Private Limited Company works under MCA (Ministry of Corporate Affairs) and controlled by the laws of Company Act, 2013 and Companies Incorporation Rules, 2014.
The required number of members for a Private Limited Company is minimum 2 and maximum of 200 persons (including shareholders and directors).
Mostly Private Limited Company is the best option for start-ups and growing companies because it allows the outside funding.
Private Limited Company cannot make public sale of its company shares.
Benefits of Private Limited Company
- It is flexible and has limited liabilities of shareholders who’ve invested in the business.
- Easy to transfer ownership just by transferring the shares.
- Private Limited Companies have possibilities to grow big and expand.
- It has great stability and also a great capital contribution.
- It has open doors to increase capital from a venture capitalist, financial institutions, angel investors, etc.
Documentation for Private Limited Company
- Copy of PAN CARD of directors and shareholders (Mandatory)
- Passport size photographs of directors and shareholders (Mandatory)
- Nationality proof of the director(s), if he/she is a foreign national
- Company details, such as, share capital amounts and the ratio of holding shares, short company description, location of the registered company office, etc.
Note: For a Private Limited Company, they should have an address of its registered office.
- Copy of voter ID Card/Aadhaar Cards and address proof of directors and shareholders (Mandatory)
- Contact details of directors and shareholders, such as, electricity bill, telephone/mobile bill, email, etc.
- Sheet of MOA and AOA
- Address proof of the business space. In case, you own the business space, rental agreement of the same
- Landlord NOC, in case the business space is rented
- Latest Electricity/Water Bills of business space
- NOC of shareholder, in case original MOA is changed with him
Our Package is Offering You:
- DIN for 2 Directors
- DSC for 2 Directors
- Name search and approval
- MOA/AOA and issue of Incorporation Certificate
- Government Fees and Stamp Duty up to INR 11500
- Free Accounting Software and GST filing
- PAN and TAN
Procedure to Register a Private Limited Company
Works as a separate legal entity to get access to credits, bank loans, limited liability, legal protection for business, access to market, etc. Comes under the provisions of Private Limited Company operating in India.
Benefit of using legal name and status value unlike Sole Proprietorship which is not a legal entity.
Provision of limited liability (up to the limit of company shares) does not affect owner’s personal wealth, assets, etc.
FAQs of Private Limited Company
A private limited company is an LTD business that is held privately and is limited to 50 shareholders. The private limited company does not allow its shareholders to trade publicly and limits the owner's liabilities. There can be only a maximum of 200 members in a private limited company.
Following are the required documents such as- 1. Identity proof for all the shareholders/directors such as a PAN card 2. Passport sized photographs 3. Copy of voter ID card 4. NOC (if the business place is rented) 5. Electricity or water bills of business
For the registration of the private limited company, an individual needs to invest at least Rs. 40,000 to 50,000. For the ROC compliance, It would take Rs.15,000.
DIN stands for the Director Identification Number (DIN). If a person wants to be a director in a company then he/she must apply for the (DIN) Director Identification Number which is issued by the Ministry of Corporate Affairs.
Yes. It is possible to get incorporated, but the company has to provide the residential address. Ministry of corporate affairs allows limited companies “they can use a residential address as a company’s registered address.
There are certain drawbacks to a private limited company such as It only allows 50 shareholders, the shares can not be traded publicly, it denies the transferability of shares and the process of compliance is quite exhausting.
To establish a private limited company, There should be 2 members and 2 directors needed. The maximum number of members has increased from 50 to 200 in a private limited company.
Forming a private limited company depends on the number of members and directors and the authorized capital. The value of the needed amount can vary on various factors mentioned above. The amount generally reaches the limit of Rs.6000 to 30,000 to establish a Pvt ltd company.
There were 2 members allowed in a private company earlier but now the number of members has been increased from 50 to 200.
There are no regulations on profit sharing in private limited companies. Sharing profit methodology only works in a partnership firm.
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