Private limited Company

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Private limited Company


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A private company may be formed for any lawful purpose by two or more persons, by subscribing their names to a memorandum and complying with the requirements of this Act in respect of registration.

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. MCA has recently implemented major changes to the process and made it very simple to incorporate a company. In this article, we look at the private limited company registration process and documents required in detail.


MINIMUM REQUIREMENTS


  • Minimum 2 Shareholders.

  • Minimum 2 Directors.

  • The directors and shareholders can be same person.

  • One of the Directors must be Indian Resident

  • Minimum Authorised Share Capital Rs. 100,000 (INR One Lac).

  • DIN (Director Identification Number) for all Directors

  • DSC (Digital Signature Certificate) for 2 Promoters & 1 witness

Striking Benefits of Private Limited Company:


Limited Liability:

The privilege of limited liability for business debts is one of the principal advantages of doing business under the corporate form of organization. The company, being a separate person, is the owner of its assets and bound by its liabilities. The liability of a member as shareholder extends to the contribution to the capital of the company up to the nominal value of the shares held and not paid by him. Members, even as a whole, are neither the owners of the company's undertakings nor liable for its debts.

Perpetual Succession:

An incorporated company never dies, except when it is wound up as per law. A company, being a separate legal person is unaffected by death or departure of any member and it remains the same entity, despite total change in the membership. Perpetual succession means that the membership of a company may keep changing from time to time, but that shall not affect its continuity.

Capacity to Sue and Be Sued :

A company being a body corporate, can sue and be sued in its own name. To sue, means to institute legal proceedings against (a person) or to bring a suit in a court of law. All legal proceedings against the company are to be instituted in its name. Similarly, the company may bring an action against anyone in its own name.

Taxation Advantage :

As everyone wants to minimize his tax burden thus company as per the income tax act 1961 has another main benefit of incorporation towards taxation. Companies are often taxed at a lower rate and are provided with better taxable benefits as compared to other forms of business organization.

Easy to Sell:

It is easy to sell business for a company than any other business form. As business Corporation value will be based on the business, not the owner, therefore making it easy to sell the Company.

Better Corporate Governance:

Companies are governed by The Companies Act, 2013 and have to follow various other regulatory procedures during the course of its governance, moreover they have to comply with the stringent disclosure norms so imposed by the authority, which let to better governed organizations and creation of value for owners.



WHAT ALL YOU GET


  • DIN for 2 Directors

  • Digital Signature Token for 2 Promoters & 1 witness

  • Company Name Approval

  • MOA + AOA

  • Incorporation Certificate

  • New Incorporation Kit

  • Customized Incorporation Master File

  • Company PAN Card

  • Company TAN/TDS Number

  • Bank Account Opening Document Support

Our Services

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