About Private Limited Company
A Private Limited Company is a corporate entity promoted by 2 or more people, they are called members or shareholders of a company. Private Limited company is run by the Directors for the benefit of shareholders complying with the requirements and regulatory guidelines of the Ministry of Corporate Affairs.
Characteristics of Private Limited Company
- Members of A private limited company must have a minimum of 2 and a maximum of 200 members.
- Limited liability of each member is limited, the condition by which shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares.
- Directors must have a minimum of 2 and a maximum of 15 directors.
- A private company is prohibited from inviting the public to subscribe to their shares and thus cannot issue a prospectus
- Name of all private companies mandatory to use the word "PRIVATE LIMITED" after the name
Benefits of Private Limited Company
Low risk to personal assets The shareholders of a private limited company have limited liability. so shareholders will be liable to pay for a company’s liability only to the amount of the contribution made by you.
Separate Legal Entity A separate legal entity or SLE refers to a type of legal entity with detached accountability. This means that the Company is responsible for the management of its assets and liabilities, debtors and creditors. And you are not liable for it. So, the creditors cannot move against you to recover the money.
Raising of Capital Even though registering a private limited company comes with compliance requirements, it is preferred by entrepreneurs as it helps them raise funds through equity, expand and at the same time limit the liability.
Transparency companies in India are registered with the Registrar of companies (ROC) under Companies Act 2013. Anyone can check the details of the company in the Ministry of Corporate Affairs (MCA). Hence, a private limited form of business structure is more transparent.
Perpetual succession means the company continues to operate despite a change in ownership. If shares are sold, or shareholders depart, the company continues to operate.
Steps to form a Private Limited Company
Are you looking to register your company as a private limited company?
Registering your company as a private limited company is difficult as the procedure is complicated and involves many compliances. Do not worry as our experts can help you in every step of the private limited company registration. Instead of reading through the entire registration process, you can avail our expert service.
Steps Involved
- Obtain a Digital Signature Certificate (DSC)
- Drafting of Spice+
- e-MOA
- e-AOA
- Application for DIN
- PAN Application
- TAN Application
Documents Required
Only Scanned Copies are needed,
ID Proof:
Scanned copy of PAN Card of all directors and Aadhar card/ Voter ID/ Passport/ Driving License
Address Proof :
Latest Bank statement/ Utility bill in the name of director which should not be older than two months
Photo:
Latest passport size photograph
Registered Office Proof:
No Objection Certificate (NOC) from the owner, Utility bill (should not be older than two months) and Rental agreement (in case of rented property)/ Registry Proof or House Tax Receipt (in case of owned property)
Our Packages at a Glance
Choose your package
Basic
₹ 11900 /-
(* All Inclusive)- DSC For Directors
- e-MOA
- e-AOA
- DIN,
- PAN & TAN
Standard
₹ 19500 /-
(* All Inclusive)Basic Includes
+
- 12 Months GST Returns Filing
- MSME Udyam Registration
Premium
₹ 29900 /-
(* All Inclusive)Standard Includes
+
- Copy of Share Certificates
- Commencement of Business
- Financial Statement Preparation
- Annual Report & Director's Report
- Board Resolution Preparation
- Roc Filing
- Income Tax Return
- 1 Year Compliance Support
Register With Us
CA/CS Assisted Service
What do you get?
DSC:
Digital signature for two directors to digitally sign the documents
Memorandum of Association:
Explains the rules and objective of the business
Articles of Association:
Explains the rules and objective of the business
Incorporation Certificate:
Certificate of incorporation to Registered Email id
Pan Card:
You will receive the e-PAN card In registered Email ID
TAN:
Tax Deduction and Collection Account Number.
FAQs On Private Limited Company
1. How much time is needed to set up a private limited company?
The registration process gets completed when you get a certificate of incorporation(COI) issued by the registrar. The application can processed within 7 TO 10 working days.
2. I already have my DSC and DIN. Will the package value remain the same?
In case, you already have a DSC and DIN, our experts will offer you some concession accordingly on the above package.
3. I have to present physically during this process?
No
4. Is stamp duty payable during incorporation process?
Yes, Stamp duty charges are imposed by the state in which the registered office is proposed to be located. The charges are on MOA, AOA & form INC
These charges are covered under the plan for all the states except certain states Our experts will guide you on additional charges.
5. Is there any qualification to become a director or shareholder in a Private Limited Company ?
Any individual can become a shareholder in a private limited company. For becoming a director in a company, no professional or educational qualification is required.
6. Can a Foreign National or an NRI be a Director in a Private Limited Company?
Yes, a Foreign National or an NRI can be a Director of a Private Limited Company in India after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident Indian.
7. Can a Foreign National or an NRI hold shares of a Private Limited Company?
Yes, a Foreign National or an NRI Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.
8. What are the benefits of a Startup in India?
- Tax exemption on profits for three years
- 80% reduction in patent registration fee
- Exempted from capital gain tax
- Easy fund raising
- 90-day exit window
9. FDI in Private Limited Company?
Government has shown a keen interest in increasing the Foreign Investment.
The private limited company is mostly preferred for the business. The private limited company is easy to raise funds. These types of companies have greater flexibility and limited liability.
FDI is allowed in private limited companies for non-residents. There are two categories automatic route and approval route under FDI in private limited company.
