In India, a private limited company is a type of business structure in which the company is privately held, i.e., owned by a limited number of shareholders, and the liability of the shareholders is limited to the amount of capital they have invested in the company. This means that the personal assets of the shareholders are protected in case the company incurs any debts or losses.
A private limited company has a separate legal identity from its shareholders, and can own property, enter into contracts, and sue or be sued in its own name. It is governed by the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014.
Some key features of a private limited company in India are:
Limited liability: The liability of shareholders is limited to the amount of capital they have invested in the company, and their personal assets are not at risk in case of business losses or liabilities.
Separate legal entity: A private limited company has a separate legal identity from its shareholders, and can own property, enter into contracts, and sue or be sued in its own name.
Perpetual succession: A private limited company has perpetual succession, which means that the company can continue to exist even if one or more shareholders leave or die.
Minimum and maximum number of shareholders: A private limited company must have a minimum of two shareholders and a maximum of 200 shareholders.
Transferability of shares: The shares of a private limited company can be transferred or sold to other shareholders, subject to the provisions of the Articles of Association.
Board of Directors: A private limited company is managed by a Board of Directors, who are responsible for the day-to-day operations of the company.
Overall, a private limited company in India is a popular business structure for small and medium-sized businesses, as it offers limited liability protection to shareholders and has a separate legal identity.
Some benefits of a private limited company in India are:
Limited liability: The liability of shareholders is limited to the amount of capital they have invested in the company, and their personal assets are not at risk in case of business losses or liabilities.
Separate legal entity: A private limited company has a separate legal identity from its shareholders, and can own property, enter into contracts, and sue or be sued in its own name.
Credibility: A private limited company has greater credibility in the eyes of customers, vendors, and investors, as it is a registered legal entity and is subject to regulatory compliance.
Perpetual succession: A private limited company has perpetual succession, which means that the company can continue to exist even if one or more shareholders leave or die.
Better access to funding: A private limited company can easily raise capital through equity and debt funding, as it can issue shares, debentures, and other securities to investors.
Tax benefits: Private limited companies are eligible for various tax benefits and exemptions under the Indian tax laws, such as deductions on business expenses, and lower tax rates for small companies.
Easy transferability of ownership: Shares of a private limited company can be easily transferred or sold to other shareholders or investors, providing liquidity to shareholders.
Board of Directors: A private limited company is managed by a Board of Directors, who bring in their expertise and experience to manage the company and make strategic decisions.
Overall, a private limited company in India offers several benefits, such as limited liability, separate legal identity, credibility, perpetual succession, better access to funding, tax benefits, easy transferability of ownership, and a professional management structure.
The following documents are required to register a private limited company in India:
Director Identification Number (DIN): The DIN is a unique identification number that is required for all directors of the company. The application for DIN can be made online on the Ministry of Corporate Affairs (MCA) website.
Digital Signature Certificate (DSC): The DSC is required for all directors and shareholders of the company to sign the electronic documents during the registration process. It can be obtained from certified authorities.
Name Reservation: The company must apply for reservation of its proposed name through the RUN (Reserve Unique Name) service on the MCA website.
Memorandum of Association (MoA): The MoA is a legal document that defines the scope and objectives of the company, as well as the rights and duties of its shareholders. It must be signed by at least two subscribers in the presence of a witness.
Articles of Association (AoA): The AoA is a legal document that defines the internal regulations of the company, such as the rules for the appointment and removal of directors, and the conduct of board meetings. It must be signed by all subscribers in the presence of a witness.
Proof of Registered Office Address: The company must provide proof of its registered office address, such as a rental agreement or property tax receipt.
Form SPICe (INC-32): This is the integrated form that combines application for DIN, reservation of name, and incorporation of the company. It must be filled and submitted online along with the required documents and fees.
PAN Card and ID Proof: All directors and shareholders must provide their PAN card and identity proof, such as Aadhaar card, passport, or voter ID card.
Address Proof: All directors and shareholders must provide their address proof, such as electricity bill, telephone bill, or bank statement.
Once all the documents are submitted and the fees are paid, the Registrar of Companies (ROC) will verify the information and register the private limited company. The entire registration process usually takes about 10-15 days.
In order to get your company registration process started, we would request you to either fill the contact form below or call us directly on +91.8920769787.
Once done, a designated account manager from our team will connect with you to understand the requirements and expectation you are having with your future company. You will be allowed to choose the desired medium to be contacted and updated about the ongiong process in regard to your company registration.
We prefer to connect with you over WhatsApp, Telegram, Email, Live Chat or our CRM directly.
Once the registration process is clear and understandable to you, you will be able to proceed with the payment in favor of DV.ASSOCIATES.
Once you are in touch with your account manager, you will be provided with a payment link to complete your payment online.
In case you want to transfer directly to our bank account of pay by DD/Cheques or Cash, you can schedule an office visit to complete the payment process.
Once your case is confirmed, you will be asked to upload the necessary documents in a secure environment.
You can either send your documents via E-Mail or WhatsApp or your designated account manager will send you a link to directly upload your documents to our self hosted and secure CRM.
The privacy of our clients is our top most priority. We do not share your information with anyone for any purpose.
For further information about documents, file formats and the process of uploading, please get in touch with your account manager.
The time taken in the registration of sole proprietorship company is between 4-10 days.
In some (exceptional) cases, some clarifications are demanded from the department of GST which may increase the time to obtain the company registration certificate.
The Final Delivery of the document is done over Email and the same can also being sent via registered post (on request).
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