.jpg){kind=logo}
Private Limited Company is the simplest and popular form of Business Registration in India. It can be registered with a minimum of two people.A Private Limited Company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the number of shares respectively held by them. Shares of Private Limited Company cannot be publicly traded.
Minimum Requirement for Private Limited Company:
*A minimum number of 2 Directors and 2 Share holders who are adults(Major).
*One of the Directors of a private limited company has to be an Indian Citizen and Indian Resident.
*The other director(s) can be a Foreign National.
*The shareholders can be natural persons or an artificial legal entity.
Basic advantages of Private Limited Company:
*Limited risk to personal assets in Private Limited Company.
*Separate Legal Entity.
*Limited Liability for members.
*Shares of a company limited by shares are transferable by a shareholder to any other person easily.
*A company being an independent legal entity can sue and be sued in its own name.
*A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved.
*For a private company, the earlier minimum number of the share capital was Rs. 1 Lakh but now there is no such minimum capital compulsion. Therefore there is no pressure of fund requirements.
*It is easy to fetch funding in a private limited company by transferring of shares.
*Fund Raising:A Private Limited Company in India is the only form of business except Public Limited Companies that can raise funds from the Venture Capitalists or Angel investors.
*FDI Allowed: In Private Limited Company, 100% Foreign Direct Investment is allowed that means any foreign entity or foreign person can directly invest in a Private Limited Company.
*Credibility: The particulars of the company are available on a public database. Which improves the credibility of the company as it makes it easy to
authenticate the details
Basic disadvantages of a Private Limited Company:
*It restricts the transfer ability of shares by its articles.
*Number of members in any case cannot exceed 200.
*it cannot issue prospectus to public.
*In stock exchange shares cannot be quoted.
Documents Required
Two Passport size photograph of All Directors.
Self-Attested PAN card copy of All the Directors.
Self- Attested Proof of Identity (Any One of Voter ID, Passport, Driving License, Aadhar Card) of All the Directors.
Business address proof (Any One of Electricity Bill, Telephone Bill, Property, Gas Bill, Tax Bill).
Residence proof documents like bank statement or electricity bill should not be more than 2 months old.
Rent Agreement Copy if Rented property or if own Noc and Electricty bill(latest elctricty bill should not older than 2 Month)
Company suggested Name (1 to 2 Names)
Company Service or object or product Name
DSC Form need to be sign
Further document will be given after above documents and or name approval.
FAQS
Is a foreign entity allowed to be Director or shareholder of the private limited company?
Yes, any foreign nationals, entity or an NRI can become a director or shareholder of a private limited company in India.
Is there any high qualification required to become a director or shareholder in the private limited company.
No, professional or educational qualification is required to become a shareholder in the private limited company. Any individual in the capacity of the person, with the sound of mind, can start a company.
Is a Private Limited Company Suitable for making FDI in India?
Yes, perfectly suitable! The private limited companies have been a hugely popular form of business entity amid foreign investors for making the direct foreign investment (subject to FDI Guidelines)[1] in any country, by means of a wholly-owned subsidiary, a joint venture, etc.
How to register a startup company in India? Is it too difficult?
Registering a company under startup India movement as startup company is very Simple and online process. For that you need to follow the following procedure.
1. Incorporating the business
You must first incorporate the business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership.
You have to follow all the normal procedures for registration of any business like obtaining certificate of Incorporation/Partnership registration, PAN and other required compliance.
2. Register with Startup India
Then the business must be registered as a startup. The entire process is simple and online. All you need to do is log on to the Startup India website and fill up the form with details of your business and upload certain documents.
Which is better LLP or Pvt Ltd Co?
Private Limited Company is the simplest and a very popular form of Business Registration in India. It can be registered with a minimum of two people. Limited liability protection to shareholders, ability to raise equity funds, separate legal entity status make it the most recommended type of business entity for millions of small and medium-sized businesses that are family owned or professionally managed.
Limited liability partnership is a partnership with limited liability. LLP is basically a combination of both Company and Partnership. It is an alternative form of business registration in India which is generally preferred by Professionals, medium and small scale business. Limited It is governed by LLP Act, 2008 and as per LLP agreement formed at the time of Incorporation
Our Packages