Private Limited Company

Solubilis provide Private limited company registration services in Chennai, Bangalore, Hyderabad, Cochin and anywhere in India. Private limited company is a common form of business organisation prevalent in India. Section 2 (68) of the Companies Act 2013 defines the private limited company. Simply private limited company is a company incorporated under the Indian Companies Act 2013, having minimum 2 members (except for one person Company) and maximum of 200 members. Normally such private company shares are not freely transferable and such companies cannot invite public to subscribe in their securities.

Characteristics of a private limited company:

  • It is a legal entity different from its members. It can hold property, borrow money etc. as a natural person.
  • Less legal complexities in forming, running and managing the company. It is enough to have two persons to form a private limited Company.
  • Private Limited companies can have a 200 members as maximum number of shareholders, which is a manageable shareholder group to any management team.
  • The shareholders personal money cannot be attached for the company Debt. Shareholders’ liability is limited to the extent of their unpaid share capital. In partnership and Sole proprietorship, the partner and Sole proprietor are personally responsible to their creditors.
  • It is an owner friendly organisation type used by most of the business community.
  • Company form of entity will have a perpetual succession, the entity will continue for ever.
  • Company will be managed by the Board of directors, which should be minimum 2 members.
  • There is no restriction on the capital requirement for forming the private limited company (As amended by the act) investors can form a private limited company with minimum capital requirement.
  • Name of the company should carry the words “Private Limited” in order to identify the entity.

FAQ'S

Private Limited Company is a separate legal entity. Private limited companies have perpetual succession with limited liability i.e the liability of the shareholders /Members of the company is limited only to the value of shares paid up by them. The major limitation of the Private Limited Company is that it cannot buy or sell its shares directly to public. The minimum shareholders should be two and maximum limit is 200. Minimum directors should be 2 and maximum limit up to 15.
Copy of PAN – Mandatory
Copy of Aadhar Card / Driving license / Voter ID / Passport – Anyone.
Copy of Bank statement / Telephone bill / Mobile bill / Electricity Bill – Anyone should be latest of two months.
Copy of Passport size photo.
Company incorporated in India must have a registered office - All communications will be sent to the address by Ministry of Corporate Affairs and other government concerns. The registered office of a company can be anywhere in India. Copy of Electricity bill of premises required along with that rental agreement is required, if office taken on rent.
Digital Signature Certificate is an electronic form equivalent to physical or paper certificates. Digital Signature Certificate is used electronically as Identity of Individuals. It allows the availability to sign certain documents electronically.
DIN stands for the Director Identification Number. Any person who has the intention to become director of a company must apply for Director Identification Number. The validity of DIN is life time. Copy of Pan is compulsory and Any one ID Proof – (Aadhar / Driving license / Voter id / Passport) and Address proof (Bank statement / Telephone bill / Electricity Bill / Mobile bill) required for all directors of the company.
Foreign nationals and Non Residential Indians (NRI’s) can register Private limited Company subject to foreign direct investment norms (Approval or Automatic route ) set by RBI. In case of NRI - Copy of Proof of address in the country of resident to be submitted with notary and apostille. In case of Foreign nationals - Copy of ID and Address proof to be submitted with notary and apostille in the country of resident. It is mandatory to have at least one director who should be resident of India.
Authorised capital is the maximum amount of equity shares that can be issued by a company. Paid up capital is the amount of shares issued by the company to shareholders / Members. There is no prescribed minimum limit of authorised and paid up capital required in order to start a private limited company. Authorised capital can be increased to any limit even after incorporation of company and Paid up capital is the value of shares allotted to the shareholders / members.
Normally registration of private limited takes 10 to 12 working days. But the processing time varies subject to the provision of documents by client and the time taken by government for approval.
1. Certificate of Incorporation along with PAN and TAN Number 2. Memorandum of Association 3. Articles of Associations
GST is not mandatory for private limited provided the turnover in a year should be within 40 lakhs in case of manufacturers and traders, 20 Lakhs in case of service providers and No existence of interstate sale i.e. Sale between state to state.

Documents required

Proposed Director & Shareholder - Indian Citizen:

  • Submission PAN Card
  • Aadhar Card.
  • ID proof copy (Voter ID, Passport, Driving License) any one is required.
  • Proof for Address any one copy from Bank statement, Electricity bill, telephone bill, mobile is required.
  • Photo copy.
  • Proposed Director & Shareholder from foreign national:

  • A copy of passport, certified from home country.
  • A copy of address proof registered officially in home town.
  • A copy of nationality proof (officially certified from a home country).
  • (Note: For further clarification this proof will considerable which depends upon the peculiar country.)
  • Two photo copies.

Register Office documents:

  • Verification documents Telephone Bill, Gas Bill, Electricity Bill, etc.
  • Documents describe under the name of Applicant and not older than two months.
  • Supposed to be if it lacks, the authorized owner or occupant need to provide No Objection Certificate.
  • If the Office is rental, a copy of rental agreement is inevitable.

Who is to choose this type of Business Entity?

These types of business organisations are best suitable for small (fairly small) and Medium Enterprises where the capital requirement is very moderate and support of financial institution for working capital is also required. There are a small group of people who intends to do business can opt for this type of organisation.

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