Overview on Private Limited Company
The Private Company is defined under Section 2 (68) of the Companies Act 2013, as a company which has the minimum paid-up capital of Rs 1 Lakh. A Private Limited Company is owned by the members, which must be a minimum 2 in number and may extend up to 200 in number. However, acts of members of the Private company are governed by the Articles of Association (AOA) and Memorandum of Association (MOA).
How to register a Private Limited Company?
The Private Ltd. Company registration, first of all, requires a minimum composition of 2 members and 2 directors. However, the maximum number of members can be 200, and maximum directors can extend up to 15 for the registration of a private limited company. The Private Ltd. Co. also has limited liabilities for its members and does not issue its shares to the general public.
Private Ltd. Co. registration in India initially requires the Digital Signature Certificate and Director Identification Number in favor of one director for the purpose of incorporation. One has to apply to the concerned RoC to ascertain the availability of name in RUN. A fee of Rs. 500/- has to be paid and the digital signature of the applicant proposing the company has to be attached in the form.
Thereafter, the company needs to obtain approval for the name and to identify that no company with a similar name is existent at the time of incorporation of such a new company. Once the approval is obtained, one has to file required forms that will be Form 1, 18 and 32 within 60 days of name approval and the necessary documents. Finally, after a full verification regarding the registration process, file a declaration in eForm 19 and eForm20. Lastly, MCA will issue a certificate for commencement of business of the Private Limited Company.
Process of Online Company registration in India
Benefits of incorporating a private limited company
- The Pvt Ltd. company is governed by the Companies Act 2013
- At least two members are required to set up a Private Limited Company
- The Private Limited has a separate legal entity than of its members
- Private Co. has perpetual succession, which means that any changes in members such as death, bankruptcy, exit, transfer, etc. do not affect the existence of the company.
- In the Pvt Ltd Company, a member is liable for his actions only to the extent of his liability in the form of a contribution to the capital.
- In the Private Ltd. Company, the capital is raised privately from the shareholders and cannot be raised or borrowed money from the general public.
- The Private Ltd. company has the capacity to sue and can be sued.
- The Pvt. Ltd. company can borrow funds in the form of loans from the financial institutions.
- The Co. can own the property in its own name.
Essential Requirements for Online Company Registration
- Minimum 2 members required and Maximum 200 members
- Minimum Paid-up capital required is Rs 1 lakh
- Minimum 2 directors required and a maximum of 15 directors
- DSC (Digital Signature Certificate) is required
- DIN (Director Identification Number) is required in favour of the one main director
Documents for Company Registration
- PAN card details of all the directors and shareholders
- DIN or Directors Identification Number of all the designated directors
- DSC or Digital Signature Certificate of the designated directors
- Memorandum of Association (MOA) and Article of Association (AOA)
- A NOC or No Objection Certificate from the landlord of the business place
- Address Proof of all the proposed directors and shareholders of the company.
- Identity Proof such as Aadhaar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders.
- Other utility bills such as telephone, water, gas, or electricity bill as residential proof of the registered office. It should not be older than 2 months.
How Legalease helps you to get Private Limited Company Registration