Private Limited Company

PRIVATE LIMITED Company is a popular method of doing business in india ,millions of private limited company presenty doing business in india, and participating for creating new india .Its a simple type of business entity  limits the owner liability to their shares , in a private limited company there are two essential elements that is Director and share holders ,share holders are the real owner of the company ,share holders provide the capital to the company for it’s business operations . Directors are the persons who managing the company’s operations   in favor of company

Companies are governed by Companies act 2013, Companies act 2013 provide the legal way  for the operating the company, companies act 2013 fixd the duties, responsibilities, rights ,system , procedure, structure for the companies register in india .

What are the benefits of registering the private limited company?

 Limited liability for the share holders – Share holders are the real owner of a company ,The Companies act 2013 provides the legal protection to the share holders of private limited company under which the financial liability of each share holders for companies debts and obligations is limited to the per value share

Advantage of registering the the private limited company:-

  1. Limited liability protection for the share holders and directors
  2. Advantage of perpetual succession ,members may come or go but company and business continue .
  3. Risk of business divided between group of people( shareholders)
  4. Small amount may invest in fome of shares of company
  5. Smart way of raising funds from the group of people
  6. Separate legal entity , company is a artificial legal person tottly different from it’s mambers and share holders ,

FEATURES OF PRIVATE LIMITED COMPANY

  1. At least 2 members
  2. Not more then two hundred members
  3. Limited liability
  4. Restriction on transfer of shares
  5. At least two Directors
  6. There is no minimum capital requirement
  7. Mandatory using the word private limited in end of name of company
  8. Run according to the MOA, AOA of company

DOCUMENTS REQUIRED FOR THE INCORPORATION OF PRIVATE LIMITED COMPANY

  • Pan card of all the directors & shareholders
  • Adhar card /Voter ID card/ Driving license/ Passport
  • Latest bank statement/ copy of passbook /latest utility bill for every director & shareholders
  • Latest utility bill & rent Agreement of premises to be used as registered office of company
  • Occupation , email id , Phone no. of directors as well as shareholders

PROCEDURE  OF REGISTERING A PRIVATE LIMITED COMPNY

  • Filling Application for Reservation of name
  • Apply for digital signature
  • Preparation and signing of incorporation documents
  • Filling the incorporation form ( spice(32) MOA ,AOA)
  • Wait for approval from MCA
  • Generation of incorporation certificate

Time limit for registering a private limited company

It may take 10-15 days for registering a private limited company . this time line further subject to the government processing and approval time