private comapany registration
DESCRIPTION
Private Limited Company is one of the highly recommended ways to start a business in India as it offers limited liability to its shareholders with certain restrictions on the ownership. In Private Limited Company registration, directors may or may not be different from shareholders. We have a pool of more than 50 legal consultants who can help you with your Private Company Registration online. To contact us visit our website www.lawgicalindia.com, Call us 7668477033TRANSCRIPT
Private LimitedCompany(ADVANTAGES, DISADVANTAGES, FEATURES & DOCUMENTS)
WHAT IS A PRIVATELIMITED COMPANY?
Private Limited Companies are mostly privately held for
small scale businesses. The liability of the members of a
Private Limited Company is limited to the extent of
shares held by them respectively. Shares of Private
Limited Company cannot be traded in public like that of
Public Limited Company.
CHARACTERISTICSOF PRIVATELIMITED COMPANY
CAPITAL
The minimum Paid-up Capital in a Private Limited Companyshould be at least 1 lakh or such higher amount which may beprescribed by the Government from time to time. Currentlyminimum paid up capital is Rs.1 lakhs.
LIMITED LIABILITY
The liability of each member or shareholders is limited. Itmeans that if a company faces loss under any circumstancesthen its shareholders are not liable to sell their own assets forpayment. The personal, individual assets of the shareholdersare not at risk.
NAME
All the private limited companies are required to add theterm ‘private limited’ after its name. This characteristicmakes it easier for the customers and the officials to identifythe private limited companies from the pool of all the othercompanies.
REQUIREMENTS FOR PRIVATE LIMITED COMPANYREGISTRATION
Members- A minimum number of 2 and a maximumnumber of 200 members or shareholders are required asper the Companies’ Act 2013. Name- The name of the company contains three partsi.e. ‘the name’, ‘the activity’ and the term ‘private limited’.It is necessary for all private company to use the word“Private Limited” at the end of its company name. Directors- A minimum 2 directors are required forincorporating Private Limited Company. Each directorshould have Director Identification Number (DIN) which isissued by the Ministry of Corporate Affairs.
ADVANTAGES OF PRIVATE LIMITED COMPANY
Ownership- In a public company, regulation andownership of shares can be sold to the public on an openmarket. On the other hand, in a private company, sharescan be sold or transferred to other people by the choiceof the owner Minimum Number of Shareholders- For a privatecompany, a minimum number of required shareholders is2, whereas, for a public company, you require a minimumof 7 shareholders. Disclosing Information- A public company is required todisclose their financial reports to public every quarter, asit will affect public investment; private companies are notsubjected to any such compulsion.
DOCUMENTSREQUIREDTO REGISTER A PRIVATE COMPANY
1. PAN Card or Passport (Foreign Nationals & NRIs)
6. Notarized Rent Agreement in English
5. Latest bank statement (2 months)/ telephone ormobile bill/ electricity or gas bill
3. Passport-sized Photograh
4. Voter’s ID/Passport/Driver’s License
2. Copy of Aadhaar Card
7. No-objection certificate (NOC) from the propertyowner
8. Sale Deed/Property Deed in English in case ofowned property
