Private Limited Company- Hello friends, today we will talk about our new article, friends, our new article is “Private Limited Company Registration”, in this we will see how we can register ourselves in a private company and what are its rules, through this article We will know from To understand more about this article, you follow this article till the end.
- 1 Private Limited Company Registration
- 2 Document Required
- 3 Documents Mandatory for Indian Citizens
- 4 Mandatory Documents to be Submitted NRIs
- 5 Proofs for Office Address
- 6 Private Limited Company Registration- Process
- 7 Step 1: Application of DSC and DPIN
- 8 Step 2: Name Approval
- 9 Step 3: Name Approval and its Reservation
- 10 Step 4: Preparation of Form INC 33 and INC 34
- 11 Step 5: Formation of a Private Limited Company
- 12 Step 6: Approval of the Documents
- 13 Advatages and Disadvantages of Private Company Limited
- 14 Private Limited Company Incorporation Fees
- 15 Benifits of a Private Limited Company Registration
- 16 Protection of Partners’ Personal Assets
- 17 A Private Limited Company is a Separate Legal Entity in Its Own Right
- 18 You Can Easily Raise Capital
- 19 It Has The Advantage Of Constant Existence
- 20 What is a Private Limited Company?
- 21 How do I register a private limited company?
- 22 What is the eligibility for a private company?
- 23 Pvt Ltd has how many employees?
- 24 What is Pvt Ltd’s annual revenue?
Private Limited Company Registration
In India, the most common type of “legal structure” for all enterprises is a private limited company. A private limited corporation can have as little as two members as well as as many as fifty. A private limited company’s directors have limited accountability to its creditors, and banks/creditors are only authorised to sell the company’s assets (when there is a scenario of default).
Creditors do not have the ability to sell directors’ personal assets. If you’re launching a business in India, make sure your firm is registered.
“Company Registration” is the first and most important step in starting a new business.
A private company is defined under Section 2 (68) of the Companies Act, 2013 as “a company with a minimum paid-up share capital as may be required, and which by its articles,
restricts the right to transfer the company’s shares; save in the event of a one-person business, limits the number of members to 200 ; bans any public invitation to subscribe to the company’s stocks.
It is strongly recommended that you register a private limited company since this form of business allows you to minimize your responsibility as a shareholder while also limiting your ownership options.
The most common kind of business entity in India is the private limited company. As of October 2020, India had over 20 lakh firms registered, with 12 lakh of them categorized as active. Under the Businesses Act, 2013, the MCA (Ministry of Corporate Affairs) regulates all companies incorporated in India.
Eligibility of Private Limited Company
- A person must be an adult, i.e. 18 years of age or older, to become a director of a corporation.
- There is no regulation that applies to educational qualifications.
- As a result, an illiterate individual can become a corporate director.
- It is not required for a director to be an Indian citizen; any foreigner can become a director of a corporation in India.
- The Private Limited Company should have a specific significance that is distinct from any other registered brand.
- It’s also important to remember that a private limited company must have a minimum of two shareholders.
- A digital signature should be obtained by all members of a Private Limited Company, which will be used to register the company.
- A minimum capital of one lakh rupees is required to start a Private Limited Company.
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Documents Mandatory for Indian Citizens
Mandatory Documents to be Submitted NRIs
Proofs for Office Address
Private Limited Company Registration- Process
Step 1: Application of DSC and DPIN
- All partners must first apply for a digital signature and DPIN. A digital signature is an electronic signature that is used to file documents.
- The Directors PIN number granted by the “MCA” is referred to as “DPIN.”
- This step can be avoided if the directors already have the “DSC and DPIN.”
- You can use these steps to finish the “Private limited business registration checklist.”
Step 2: Name Approval
- You must give the MCA with three alternative possibilities for your company name, from which one will be chosen.
- The names supplied should generally be one-of-a-kind and indicative of the company’s industry.
- This step helps you in meeting the criteria for “Private limited business registration name availability.”
Step 3: Name Approval and its Reservation
- The approval of the name of a private limited company is an important step in the formation of a business.
- The RUN (Reserve Unique Name) form is used to reserve the name provided by the Private Limited Company.
- The given name must comply with Rule 8 of the Company Registration Act of 2013.
Step 4: Preparation of Form INC 33 and INC 34
- This phase entails the creation of a MOA and an AOA. These are INC 33 and INC 34 documents, respectively.
- If necessary, we can submit for ESI, EPF, and GST at the same time using the AGILE form.
Step 5: Formation of a Private Limited Company
- The incorporation forms (INC 33, INC 32, AGILE) are submitted with SPICe form INC 32 for the formation of a private limited company.
- These must be filled out with the Registrar of Companies in the state where the company’s registered office is situated.
Step 6: Approval of the Documents
The registrar issues the business identity number (CIN), as well as the PAN and TAN, after the SPICe form INC– 32 is accepted.
Features of Private Limited Company
- A Private Limited Company has no public relations and is not allowed to take any kind of deposits from the public or public sectors.
- People are not authorized to transfer shares in a private limited company, which can help prevent large public businesses from acquiring smaller private limited enterprises.
- Every Private Limited Company should use the abbreviation “Pvt. Ltd” after their name.
- At any point in time, a Private Limited Company can have a maximum of 200 members.
- Setting up a Private Limited Corporation is relatively simple.
- The Companies Act of 2013 establishes a legal entity known as a Private Limited Company.
- A private limited company has an indefinite existence, which means that it is independent of change in partners, death, or other events.
- Corporate tax must be paid by a private limited company.
Advatages and Disadvantages of Private Company Limited
- The members are well aware of each other, but the capital owner has absolute power.
- The administration of affairs and business is quite flexible.
- A statutory meeting is not required.
- A private limited corporation must have two directors.
- The members appreciate the facilities since the liability is restricted.
- After certification, the firm can begin immediately.
- Easy to register, manage & run.
- One of the most significant drawbacks of a Private Limited Company is that its rules limit the ability to transfer shares.
- In any event, the number of shareholders in a Private Limited Company cannot exceed 50.
- Another disadvantage of a private limited company is that it is unable to submit public prospectuses.
- Shares cannot be issued on a stock market.
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Private Limited Company Incorporation Fees
|Name Approval Fees||Rs. 1000|
|2 Digital Singnatute(DSC)||Rs. 1200|
|Stamp Duty(Delhi)||Rs. 500|
Benifits of a Private Limited Company Registration
Protection of Partners’ Personal Assets
- Shareholders of a Private Limited Company usually have limited responsibility.
- As a shareholder, you will be held responsible for the company’s debts. But only to the extent of your contribution.
A Private Limited Company is a Separate Legal Entity in Its Own Right
- In other words, according to the Indian constitution, the partners/owners of a PLC are an entirely separate entity.
- As a result, a company’s efficient management of its debtors and creditors, assets, and obligations would be rewarded indirectly.
You Can Easily Raise Capital
- A private limited company that is registered in India must conform to a variety of regulations.
- A number of enterprises favor this type of business structure.
- Because it allows them to raise the cash they require through stock.
- It also gives them the option to increase and decrease their personal liability.
It Has The Advantage Of Constant Existence
- The most essential benefit is “Perpetual Succession”.
- It means it will exist until lawfully dissolved.
- As a distinct legal entity, it is unaffected by any member’s departure or death.
- Even if the existence changes, it will still remain.
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I hope you enjoyed and learned a lot from this essay. Thank you very lot for your help. If you have any questions about this post, please leave a comment. I, Aarti Devatwal, would want to express my sincere gratitude for taking the time to read this essay. I hope you learned a lot from this.
What is a Private Limited Company?
In India, the most common type of “legal structure” for all enterprises is a private limited company. A private limited corporation can have as little as two members as well as as many as fifty.
How do I register a private limited company?
Get DSC (Digital Signature Certificate) Obtain a DIN (Director Identification Number)
Apply for a name. Fill out the EMoa and EAOA to form a limited business.
Obtain the firm’s PAN and TAN.
What is the eligibility for a private company?
A person must be an adult, i.e. 18 years of age or older, to become a director of a corporation. There is no regulation that applies to educational qualifications.
As a result, an illiterate individual can become a corporate director.
Pvt Ltd has how many employees?
The maximum number of members in a private limited corporation is 200. Only one person is the operator of the business is a one-person company.
What is Pvt Ltd’s annual revenue?
The company must change to a private or public limited company within 6 months of the paid-up share capital exceeding 50 lakhs rupees or the final date of the relevant period exceeding 2 crore rupees.