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What is a private limited company?

Private Limited Company is an ideal begin for any individual who needs to begin their business to give it a different legitimate identity. Private constrained company can be framed easily and its procedural consistence are additionally simple when contrasted with that of an open organization.

A private Limited Company, or LTD, is a sort of secretly held independent venture substance. This kind of business element limits proprietor risk to their offers, confines the quantity of investors to 50, and limits investors from openly exchanging shares. We will give salary government form arrangement, revised return, responding to Department notification and illuminating other Income Tax related issues.

What are the Documents required for Formation of Pvt. Ltd. Company?

PAN card and Residence Proof of directors of the company
Copy of Rental Agreement / EB Card Copy of Registerd Office
Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
passport-size photograph
Specimen signature (blank document with signature [directors only])
copy of Passport (In case of Foreign Director)

Advantages of Pvt Ltd Company


MIN 2 SHAREHOLDERS

A private limited company can be started off with just two members who will be the shareholders and directors.

BORROWING CAPACITY

Companies enjoy better avenues for borrowing of funds when compared to other forms of business such as sole proprietorship and partnership.

BUSINESS CONTINUITY

A company enjoys perpetual existence unlike other forms of business i.e.,the company continues to exist irrespective of the status of the owner.

MINIMUM CAPITAL REQUIED

Minimum capital required to incorporate a private limited company is one lakh.

LIMITED LIABILITY

Personal assets of the shareholders will not be at risk, in the event of the company facing financial distress.

SEPARATE LEGAL ENTITY

A company enjoys separate legal identity unlike partnership firms.

What is the procedure for Private Limited Company Registration?
  • DSC and DIN for all directors are required.
  • 4-6 proposed names ought to be given that ought to be interesting and suggestive of organization business.
  • Memorandum and Articles of Associations ought to be drafted. Oath and statement by first endorsers and Directors ought to be readied
  • Once the application is properly documented and acknowledged by ROC, declaration of consolidation is issued and the organization is good to go to begin it’s operations.
  • At that point you have to apply for PAN and TAN. Dish and TAN are gotten in 7 working days. Post this, you can present the Incorporation declaration, MOA, AOA and PAN with a bank to open your financial balance.

FAQ's

Any person above 18 years can become a director. Non-residents can also become director of Indian companies.
ID proof and residence proof of all the proposed directors, PAN card is mandatory for Indian nationals. No objection certificate from the owner of registered office or lease agreement must be produced.
Digital signature is process to authenticate and validate records electronically. DSC is required for every director of the company as the Ministry of Corporate Affairs (MCA) mandates digital signature of directors on some documents.
Authorized capital of a Company is the amount of shares a company can issue to its shareholders. Companies have to pay authorized capital fee to the government so as to be able to issue shares. Companies have to pay authorized capital fee for a minimum of Rs.1 lakh.
Yes, a foreign national can become director of a private limited company. Atleast one director in a company should be resident Indian.