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What is Private limited company?
Private Limited Company is the most preferred business structure for Start-ups and growing Business as it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent.
Private company incorporated under the laws of Indian Companies Act’2013. It has shareholders with limited liability and its shares may not be offered to the general public. Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. A Private Limited company is a limited liability company with a minimum of two and a maximum of 200 members and offers legal protection to its shareholders. It lies between a partnership and a public company. It is designated as Private Limited and is a small business held privately where the owner’s liability is limited by the number of shares held in the enterprise.
If a business is planning to go global, then the Private Limited Company is the only way which allows 100% Foreign Direct Investment, without any prior government approval.
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Procedure For Company Registration
Documents Required For Company Registration
Minimum Requirements For Company Registration
Advantages Of Private Limited Company Registration?
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Frequently Asked Questions
The entire procedure is 100% online and you don’t have to be present at our office or any other office for incorporation. A scanned copy of documents has to be sent via mail. They get the company incorporation certificate from MCA via courier at their business address.
ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai & Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad and so on.
Firstly we just need to find a unique name as prefix and promoters need to provide name of the proposed company along with significance of word. Secondly the name needs to include a word about the company business activity. Finally before selecting Names it will be advisable to check on Google, MCA Portal, MCA Guidelines and Trade Mark site the availability of Name.
No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after incorporation of the company. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.
Yes, company office address can be changed anytime after incorporation.
Any individual/organization can become the member of the private limited company including foreigners/NRI. However, the individual must 18+ above in terms of age and should have a valid PAN card.
Yes, you need a minimum of two directors for a private limited company. The maximum members can be 200. If you are the sole owner, you can register as a One Person Company.
If you have all the documents in order, it will take no longer than 5-7 days. However, this is dependent on the workload of the registrar.
No minimum paid-up Capital is required to start a Private Limited Company.
No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year companies have to file very basic returns with ROC office.
Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by ROC office (Ministry of Corporate Affairs).It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a director of a company.
A digital signature is electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for incorporation of Company. Digital Signature cannot be used in physical documents.
MOA means Memorandum of Association and AOA means Articles of Association. These are the byelaws or rules based on which important matters like main business of the company or meetings is decided. These are standard legal documents prepared by Company Secretaries during registration of the Company.
PAN is a Permanent Account Number (10-digit alphanumeric number), which is issued by the Income Tax Department in India. A PAN Card is used as a document of identity proof.
(TAN) is a Tax Deduction and Collection Account Number (10-digit alphanumeric number), issued to persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961.
Capital means investment made by shareholders into the company. Authorized capital is an amount up to which company can issue shares. This capital is mentioned during incorporation of the company based on which ROC registration fees and stamp duty is paid. Paid up capital is an actual investment which goes from shareholders into company bank account, against which share certificate is issue by the company.
This is not true, a Private limited company is one of the mode of doing business, which means it can be started from scratch. For that matter even after incorporating a private limited there is no obligation that the company must have sales or turnover.
There is no automatic applicability. Provident Fund (PF), Service Tax or VAT law applicability is same for all types of businesses like sole proprietorship, partnership firms and companies. These laws are applicable only after crossing certain threshold limits.
Yes, a salaried person become the director in private limited company, there are no legal bondages in this, but you have to go through with your employment agreement if it contains any restrictions on doing so.
Yes, an NRI or Foreign National can be a Director in a Private Limited Company after obtaining Director Identification Number. However, atleast one Director on the Board of Directors must be a Resident of India.
The Common Seal is the official signature of the company. Any documents on which Common seal is affixed, is deemed to be signed by the company.
A Private Limited Company needs a few more ROC compliance translating into an additional cost of 5000 to 10000/annum.
No minimum capital is required.
A Private limited company can have a maximum of 200 members.