A private limited company is a type of privately held small business entity. It restricts shareholders from publicly trading their shares that is, offering their shares to the general public over a stock exchange. This type of company also limits the liability of each member or shareholder. It implies that if a company incurs any business loss then personal, individual assets of the shareholders are not at risk. In other words, a Pvt Ltd company has a separate identity from its owners or shareholders.
Private Limited Company is a type of privately held small business entity and a preferred legal structure for business organisations. To form a Pvt Ltd Co., you need to register the name of your organisation, its directors and its constitution such as Memorandum of Association and the Articles of Association, with the Ministry of Corporate Affairs (MCA). A private limited company has at least two directors/shareholders and a maximum of 200 members. It is mandatory for such company to use the word private limited after its name.
The registration process of the private company can be easily done online, so you don't have to leave your home to get your company incorporated. At Great solution, our team of highly competent professionals is at your service to make you understand how to register a private limited organisation. You can register a company through Great Solution in every city across the country.
A private limited company is regulated by the Ministry of Corporate Affairs under the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. Any normal individual can be a director and also investor, where a corporate legitimate entity can become only a shareholder. The foreign nationals or NRIs are additionally permitted to become the Directors as well as shareholders with Foreign Direct Investment (FDI).
The limited liability protection to investors/shareholders, the capacity to raise the funds, separate lawful individual status and the perpetual succession are some of chief characteristics of a Private Limited company.
The Digital Signature Certificate (DSC) must be applied by all the directors, which is important to file for the company registration. For this, you will just need to give photocopies of required documents; our team members will fill the form and submit entire information online.
When we apply for the DSC, we will approach you to pick a name for your organisation. The scanned copies of required documents in respect to directors will be utilised to apply SPICe i.e. INC-32 and the Memorandum of Association (MoA) and Articles of Association (AoA). You will receive the Certificate of Incorporation after the entire process is done.
Obtaining an authentic Permanent Account Number (PAN) and a Tax Account Number (TAN) are essential. We will apply for it online, you just need to dispatch printed versions of the required records yourself. The PAN and TAN will be couriered within 21 working days to your registered office address.
The identity and the address proof which is very important will be required for each and every promoter and the investors of the organisation. PAN card is obligatory for Indian nationals. For the other nationals (foreigners), apostilled or notarized copy of the passport is compulsory to submit. Whatever documentation you submit, should be valid. The personal confirmation records like the bank statement or the electricity bill should be at least 2 months old.
As per rule, all companies ought to have a registered office in India. For this, a current duplicate copy of electricity bill or the property tax receipt or bill of post-paid mobile or bill of water payment must be submitted. You need to submit the rental agreement, utility bill or the deal deed and a letter from the landowner with her/his proper consent to utilize the workplace as an office of the organisation/company
Note: One of the directors must self-attest the initial three documents. At least 1 director needs to be Indian Resident. In case of foreign nationals and NRIs, all the above documents should be notarized or apostilled.
The following scanned copies of documents are required:
Note: It is not necessary that your registered office should be within a commercial space, it can be your home address as well.
A private limited company is an organisation with two directors and two investors at the base. On the off chance that you are a solitary investor, you can likewise include your parents or relative with only one single share as a part of the organisation.
The new businesses start a Private Limited company to raise investment financing and offer their best workers stock opportunities. Without utilising investment opportunities, it's relatively difficult to manufacture and scale a substantial business. Banks and different moneylenders would prefer to give the loan to private limited organisations, as compared to sole proprietors.
At first, we enable you to get a digital signature certificate (otherwise called DSC), which is actually an e-signature to enable you to finish the new organisation enrolment on the web. It normally takes two days to get the DSC from the time you present the valid documents. Next, Director Identification Number (additionally called a DIN) is applied. This approximately takes one day. The third stage includes the selection of a name for your organisation. Once done, the Memorandum and Articles of Association can be drafted and Certificate of Incorporation be applied.
A private limited organization must have a minimum number of 2 members and the number of shareholders cannot exceed a fixed figure (commonly 50), as per the provisions of the Companies Act, 2013.
There is no minimum capital required as such to form a Pvt Ltd company. PCs and different necessities can comprise the assets of the organisation.
Private Limited organisations are not listed over any stock exchange, and regulatory necessities put on them are less than on public limited or listed companies. For instance, they are not required to unveil their books of records. They undergo stress over the long term if they have poor performance result for a particular quarter.
Organisations regularly need to obtain cash. In structures, for example, General Partnership, partners are actually at risk for the entire obligation raised. So in the event that it can't be reimbursed by the business, the partners or owners would need to pitch their own belonging against the loss. Whereas in a private limited organization, only the amount invested at the beginning of the business would be lost, but the director’s personal property would be protected.
SEPARATE LEGAL ENTITY
A Private Limited Company is the legitimate body and juristic individual built up under the Companies Act. Along these lines, an organisation has a substantial rights including that of the opening of a bank account, appointing representatives, or acquiring the licenses and more as an autonomous corporate body. A member (shareholder/director) of an organisation has no individual risk to the creditors of an organisation for organisational obligations.
Private limited companies effectively oblige equity financing as there is an unmistakable distinction amongst shareholders and directors and restricted risk.
SIMPLE DEBT ACCESS
A private limited organisation has a bigger number of alternatives for assuming debt than LLPs. Not exclusively are bank loans simpler to get (than OPCs and LLPs), the alternative of issuing debentures and convertible debentures are constantly accessible to it.
Capacity to borrow
A Private Limited Company can generate substantial finances in India. It can likewise issue shares, inclination offers, and debentures and acknowledge the same with RBI consent. Banks and financial institutions prefer to lend to an organisation as opposed to the association firms or proprietary concerns.
A Private Limited Company has ‘perpetual succession’, that means it has an uninterrupted existence until it is legally dissolved. As a company is a separate legitimate individual, it is unaffected by death or the departure of any member and it continues to be in existence irrespective of the changes in ownership.
A Private Limited Company can purchase, sell, own, possess, enjoy and transfer property rights to anyone in its name. The property possessed by an organisation involves hardware, unmovable resources, land, private property, manufacturing plant, and so forth, No investor can assert some authority upon the property of the organisation – as long as the organization is the going concern.
The most vital thing of the business is the name of the company. It is viewed as the initial introduction for the providers, purchasers and the partners. It must, along these lines, be suggestive, important and appealing.
The name must be brief and not too long. People should find it easy to pronounce it effortlessly and recall it when they read it or hear it anywhere.
The name of the organisation ought to be identified with the business. It must fit in the organisation's branding.
The name of the organisation mustn't be the same or indistinguishable from an officially existing organisation or a trademark. One should ideally keep away from the plural adaptation.
The name of the organization must end with the addition "Private Ltd" in case of a Private Limited organisation..
The name of the organisation shouldn't be offensive, injurious or against traditions and the convictions of any religion.
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