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Private Limited Company Registration

A private limited company is a voluntary association of not less than two and not more than two hundred members, whose liability is limited, the transfer of whose shares is limited to its members and who is not allowed to invite the general public to subscribe to its shares or debentures, cannot make or accept deposit from public. The liability of shareholders is limited.

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Private Limited Company Registration

Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession. The Companies Act, 2013, states that 'company' includes company formed and registered under the Act or an existing company i.e. a company formed or registered under any of the previous company laws.

A Private Limited Company is a Company limited by shares in which there can be maximum 200 shareholders, no invitation can be made to the public for subscription of shares or debentures, cannot make or accept deposits from Public and there are restriction on the transfer of shares. The liability of each shareholder is limited to the extent of the unpaid amount of the shares face value and the premium thereon in respect of the shares held by him. However, the liability of a Director / Manager of such a Company can at times be unlimited.

Company is separate legal entity distinct from its shareholders. The major constituents of a company are its members, who are the ultimate owners and its directors. It is an important feature of the company form of business, that there is a gap between the ownership and control over the affairs of the company. In real sense the members are the owners of a company, but it is being managed by the directors who are elected representatives of its members, because it is absolutely necessary for it to have a human agency called as the Company's board of directors. The Board of Directors comprises the directors.

Company is a separate legal entity which is registered under the companies act. Every country is having different Company registration procedure. In India companies are registered under Companies act 2013. Company formation is not at all an easy task. Company registration in India required certain procedure to be followed. New company registration is always advisable as it will legally benefit organization. Incorporation of Company is yet another important area of concern. We help you in the Company registration in India. We provide information about Company Registration.

Advantages of Private Limited Company

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Starter
$ 29 /mo

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5 Website
10 Pages and Blogs *
2 GB Storage
Custom Domain FREE
Developer Platform
Drag and Drop Widgets
Email and Forum Support

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Starter
$ 29 /mo

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5 Website
10 Pages and Blogs *
2 GB Storage
Custom Domain FREE
Developer Platform
Drag and Drop Widgets
Email and Forum Support

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Sign Up

process
Step 1

Apply for Digital Signature Certificates for proposed subscribers(DSC).

Step 3

Application for Approval of Proposed Name from ROC

Step 5

Application for Incorporation of Company along with Registered Office Situation

Step 2

Generate Directors Identification Numbers for Proposed Subscribers.

Step 4

Drafting of Memorandum and Articles of Association.

Step 6

Application for Granting Certificate of Commencement of Business.

frequently asked questions
What is a Private Limited Company?

A type of company that offers limited liability, or legal protection for its shareholders but that places certain restrictions on its ownership. These restrictions are defined in the company's bylaws or regulations and are meant to prevent any hostile takeover attempt. A private limited company by definition restricts the number of members (maximum 50), though only 2 persons are the minimum requirement to start a private limited company. A company is considered as a separate legal entity, perpetual succession, with liability of shareholders limited to the capital being contributed by them. Hence, a shareholder is not personally liable for the debts of the company

For small businesses, what are the benefits of Private Limited Companies?

It provides creditability to business in financial institutions, suppliers and potential clients. As it makes easier for companies to get loans at favorable terms from banks or convincing potential clients while entering into deals as companies are trusted more than other forms of business. Limited liability of shareholders to the extent of their contributed capital only. Perpetual succession of a company .

How to form a Private Limited Company?

Any two or more members/ Persons can form a private limited company. A minimum of two individual shall act as directors of the company. The shareholders (initial members/promoters) can themselves choose to become director. It is practically seen that generally shareholders are also directors of the same private limited company. Filing of required documents (Director Identification number, Application for name approval, Incorporation documents such as MOA/AOA/, registered address) with the Registrar of Companies. Minimum capital of Rs. one lakh (it can be used for business whenever required and does not necessarily have to be kept in bank/company deposit all the time).

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list of documents required
  • Identity Proof of All the Directors (self Attested) - PAN Mandatory and VOter Id Card, Passport, License, Aadhar Card
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advantages of private limited company

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The personal assets of shareholders will not be at risk of being seized by creditors

Scope of expansion is higher because easy to raise capital from financial institutions

Private limited companies enjoy permanent succession because the company is its own legal entity

Formation of private limited company is always preferred when the business setup is for long term

A company enjoys the benefit of credibility among the customer & public and customer reliance on a company is much higher than any other form of business

One of the most important feature of Company is flexibility with regard to changing name of company, ownership

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