Private Limited Company Registration- What one should know?
Private Limited Company Registration
Private
limited company registration is the most common form of company
registration in India. It is a type of company which has limited share capital
and maximum number of shareholders. The main benefit of registering a private
limited company is that it offers a high degree of legal security to the
owners. The owners are protected against personal liability, which means that
they are not personally liable for the debts and obligations of the company.
While a private limited company can be set up in few days, however, you need to be aware of the legal requirements to set one up. That’s why it’s a good idea to talk to a professional before you go ahead with the process. The following sections will guide you through how to register a private limited company in India in the simplest manner.
Basic
Features of a Private Limited Company
Some of the features of the private limited companies in India are as under:
1. It has Separate legal entity
2. It can have at Least 2 minimum shareholders and
maximum 20 shareholders
3.
Not more than 200 members allowed
4.
It is compulsory to have minimum of 2
directors and out of which at least 1 director shall be Indian resident and
Indian citizen.
5.
Compulsory use of Pvt. Limited in the
company name
6.
No minimum capital restriction. Can be
registered with even Rs 50,000.
Complete
Process of Private Limited Company Registration
Looking
to form a private limited company? Incorporating a private limited company is
difficult because the process is complicated and involves a number of steps. In order to register a private
limited company, the following steps must be followed:
Digital
Signature
A company must apply for a digital
signature before it can be incorporated. A digital signature is a unique code,
which is associated with a company's applications and documents. The digital
signature is mandatory for all companies, whether they are applying to register
a new company name or to change their registered name.
1.
The
PAN cards of the shareholders and directors. Foreign nationals must provide a
valid passport.
2.
Recent
telephone bills/electricity bills/bank statements for shareholders and
directors.
3.
Passport-sized
photos of proposed directors
4.
Current
Electricity Bill/Telephone Bill of the registered office
5.
The
owner(s) of the registered office should provide the No Objection Certificate
6.
If
applicable, a lease agreement for the registered office should be provided
In above write up, we have provided an overview of private limited company registration in India. It may be noted that although the procedure is quite similar in case of other types of business set up in India , however, there may be some changes in the documentation part as well as post registration compliance.
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