Private Limited Company Registration
A Private Limited Company is held privately for all small businesses, where liability of the members is limited to the amount of shares held by them. In this type of company, shares cannot be publically traded.
Private Limited Company is the most prevalent and popular type of corporate legal entity in India. They govern the private limited company registration under The Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. For registering a private limited company, a minimum of two shareholders and directors are needed. A normal individual can be a both director and shareholder, while in corporate legal entity only one shareholder is needed. Further, foreign nationals, foreign corporate entities or NRI is allowed to be Directors and Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
Some Unique traits of a private limited company like protection to shareholders with limited liability, raising equity funds, separating the legal entity which make it the most recommended type of business entity for millions of small and medium sized businesses.
BusinessCrow is the leader in providing services relating to company registration in India. It can help you to register a private limited company, one-person company, and section 8 company, Producer Company and Indian subsidiary and many more. The estimated time to complete company formation is around 10-15 working days, subject to government processing time and client document submission.
Reasons to Register a Private Limited Company
Separate Legal Entity
Private Limited Company is separate legal entity and a juristic person established under the Companies Act. Hence, a company has a range of legal capacities including opening of a bank account, hiring of employees, taking on equity or obtaining licenses and more as an independent corporate entity. The members i.e. Shareholders/Directors of a company have no personal liability to the creditors of a company for company's debts.
Private Limited Company has 'perpetual succession', meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.
In India, private limited companies can easily raise funds. With the permission of RBI, private Companies can also issue equity shares, preference shares, and debentures and accept deposits. Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns.
Ownership of a business can be easily transferred in a company by transferring shares. The signing, filing and transfer of share transfer form and share certificates is sufficient to transfer ownership of a company. In a private limited company, the consent of other shareholders may be required to effect share transfers.
Private Limited Company being an artificial person, can acquire, own, enjoy and alienate property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company.
Identity and Address Proof
Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.
Registered Office Proof
All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.
Simple & Transparent Pricing
Rs. 8499.00All Inclusive
Rs. 9999.00All Inclusive
Rs. 11999.00All Inclusive
Features of Private Limited Company
For starting a company, minimum of 2 members and maximum of 200 members are required as per the provisions of the Companies Act, 2013.
The liability of each member or shareholders of the company is limited. It means that when a company faces loss then its shareholders are liable to sell their own assets for payment and assets of the shareholders are not at risk.
The Company keeps eyes in law even in the case of death, insolvency, the bankruptcy of any members. This leads to perpetual succession of the company. With this law, the life of the company keeps on existing forever.
Index of members
A private company has a privilege over the public company, as they do not require an index of its members whereas the public company have to maintain an index of its members
A number of directors
When it comes to directors a private company require only two directors. With the presence of two directors, a private company can work on its operations.
Prospectus is a legal document of the company affairs, which is issued by a company for its public. However, in the case of private limited company, there is no such need of issuing a prospectus because in this public is not invited to subscribe for the shares of the company.
The amount receive by the company that is 90% of the shares issued within a certain period. If the company is not able to receive 90% of the amount then they cannot continue the business anymore. In case of private limited company, shares can be allotted to the public without receiving the minimum subscription.
Use of word ‘private limited’ after its name is compulsory for all private companies
How we help with Private Limited Company registration
BusinessCrow can incorporate a Private Limited Company within 14-20 days, subject to Registrar of Company (ROC) processing time.
Obtaining DSC & DIN
Digital Signature Certificate (DSC) and Director Identification Number (DIN) is required for the proposed Directors of the Private Limited Company. DIN and DSC can be obtained for the proposed Directors within 5-7 working days.
A minimum of one and a maximum of six proposed names must be submitted to the MCA and the name approval can be obtained within 5-7 working days subject to availability, naming guidelines and MCA processing time.
All the registration documents should be submitted to the MCA along with an application for registration. Subject to their period, MCA will usually approve the application for incorporation within 5-7 days.
Check Company Name Availability
Check availability of company or LLP name in India against the MCA and trademark database.