Private Limited Company

Private limited company is the most preferred corporate entity amongst small, medium and large businesses in India due to various benefits. e4efilings help you enjoy all these benefits with quality online consultancy services at just Rs. 14999/- (All Inclusive) 

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What is a Private Limited Company?

A public limited company is a type of privately held business entity. This type of entity limits owner’s liability to their shares that simply means that the liability for any future obligation is limited to the extent of his amount of ownership a shareholder holds. Start-ups and growing businesses choose to register a company in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. To register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters

Benefits of Registering a Private Limited Company

Separate Legal Entity

A Private Company is a separate legal entity from its owners. In other terms a company can purchase assets, borrow debts in it’s name moreover a company can sue any individual or any other entity and an individual or any other entity can also file suit against a company. In simple words a company enjoy nearly same benefits as of a human

Lives Forever

Private limited company has ‘Perpetual succession’ that means even the owners of a company dies or ceases to be directors or shareholders or even it’s ownership is changed. It stays alive and shall enjoy uninterrupted existence until it is legally dissolved.

Can Own Property

Private Limited Company being an artificial person, can acquire, own, enjoy and alienate, property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company – as long as the company is a going concern.

Easy Transferability

Ownership of a business can be easily transferred in a company by transferring shares. The signing, filing and transfer of share transfer form and share certificates is sufficient to transfer ownership of a company. In a private limited company, the consent of other shareholders maybe required to effect share transfers.

Can Raise Debts

Private Limited Companies can raise equity funds in India, However it cannot issue shares to the general public. Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns

Frequently Asked Questions

If your query is not solved Please contact us!

What Documents are required for company registration?
  • Scanned copy of PAN Card or attested scanned copy of Passport if you are an NRI or a Foreign National
  • Scanned Copy of Voter’s ID/Passport/Driver’s License
  • Scanned Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Ofcourse a scanned Passport Sized Photograph of yours
  • Specimen signature on a blank document of proposed directors
  • Directors please self attest the first three documents
What is the Process of company registration in India?
  • First step is to create Digital Signature Certificate or DSC and atleast two of them will be required to in order to obtain Director Identification Number or DIN
  • Name approval for your proposed company
  • Memorandum & Article of Association (MOA & AOA) (Don’t worry We’ll draft it for you)
  • SPICe i.e. INC-32 Approval and your company is now incorported and a certificate has been issued along with your PAN as well as TAN by ROC for the same
What is a DSC or Digital Signature Certificate?

The DSC is an instrument issued by certifying authorities by which you can sign electronic documents. As all documents needed are electronic, So we are going to need a DSC for each Proposed Director (Don’t worry the process for getting a DSC is too easy and we help you get it)

What problems I might face while getting my company's name approved?

Mostly the Registrar of the companies (ROC) expect applicant to follow naming guidelines laid down by the The Companies Act 2013, The more closely you follow the rules, the your better chances of approval

  • First ensure that your name is available
  • Try not to pick a name that is too well-known. For E.g. Flipkart is a well known company so the ROC might reject your application even though you have separate set of business objectives
  • Do not use any abbreviations, adjectives and generic words  because they are straight away rejected. For E.g. If you Choose a name like ABC, XYZ or BBC it’ll be rejected. The word Bank, Exchange, coorporation, Nidhi, stock exchange will be rejected unless you take proper permission from relevant authority
  • Do not pick a name that is registered by any other entity as trademark. However if you are able to get an NOC (Non Objection Certificate) from that entity you might get that name approved
How many days does it take to get a company registered?

3 Working Days

One director must apply for the Digital Signature Certificate (DSC), which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details

7 Working Days

As soon as we apply for the DSC, we will ask you to pick a name for your company, and send us some scanned documents regarding it and its directors. These will be used to file SPICe i.e. INC-32 and the Memorandum of Association (MoA) and Articles of Association (AoA). The Certificate of Incorporation will be approved at the end of this process. You’ll also get your PAN and TAN numbers printed on the Certificate of incorporation

How many Directors and Shareholders can be there in a Private limited Company?

Minimum 2 Directors and Shareholders are required to register a private company However, Maximum number of Directors can be 15 and maximum shareholders can be 200

How much amount of money is required to invest in the beginning?

Good news is that in India companies do not need to have any paid up Capital that means you don’t have to introduce any money into the company