Private Limited Company is the most popular and common form of doing business in India. Private Limited Company is an Artificial Person created in the eyes of law and enjoys the separate legal status. Private Limited companies in India are registered and governed by the MCA (Ministry of Corporate Affairs) under the The Companies Act, 2013.
Shareholders of the company enjoys the benefits of Limited Liability. In private limited company, directors may be different from shareholders. Shareholders are the members of the company called co-owners. Private Limited company is being operated and managed by its directors.
At Startups Helpline, we do all legal formalities and fulfill the compliances, as defined under the Companies Act, 2013. After registration of the company process with MCA, you will receive a Certificate of Incorporation (CoI), along with PAN and TAN. Now you are ready to take off your business to the new heights. Startups Helpline will also assist you in Statutory compliance of Private Limited company after incorporation.
A Private Limited company can raise equity capital from persons or entities interested in becoming a shareholder. Company can easily raise money from private investors, angel investors, venture capitalist and HNI. Private Limited company can also easily avail credit facilities from Banks, Financial Institutions and NBFCs.
The Private Limited company is an Artificial person. The separate Pan card is issued to Private Limited Company. Hence the Private Limited company enjoys the status of Separate Legal Entity. The private limited company can sue and can be sued in the courts.
Private Limited Company enjoys the benefit of Limited Liability. Limited liability refers that the Liability of the shareholders will not exceed the amount invested in a business through Share Capital by them. Shareholders of the company will not be held responsible, in case of any unforeseen losses and statutory or legal liabilities in the company.
Private Limited company enjoys the benefit of separate legal entity and a artificial person and hence can own a property just like a Natural Person.
Perpetual succession means that a Private Limited Company is not determined by the longevity of its Shareholders and Directors. The company will be run even after the death of the shareholders and directors.
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In order to start a private limited company, a minimum of two people are required. A minimum of two Directors and a maximum of fifteen Directors are allowed in private limited company. A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company.
The Director needs to be over 18 years of age and must be a natural person. Even an foreign nationals can be Directors in an Indian Private Limited Company.
A Private Limited Company can be started with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.1 lakh [Authorized Capital Fee] during the incorporation of the Company.
An address in India where the registered office of the Company will be situated is required.
No there is no need to appear at any office for the incorporation of a Private Limited Company. All the documents can be scanned and sent through email to the office.
Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals.
To incorporate a Company quickly, make sure the proposed name of the Private Limited Company is very unique.
Once a Company is incorporated, it will be active and will remain in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.
A Digital Signature is used to establish the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) has made it compulsory for the Directors to sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Company.
Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number.
