Private Limited Company
A Private Limited Company is a type of business structure registered to give a separate legal existence to the business apart from its directors and shareholders. This means that a company continues to exist even after the death of any member. A private company in India can consist of a maximum of 200 members at a time. In a Private Limited Company, the shareholders are considered to be the owners of the company and the directors are responsible for the everyday operations of the business. This ensures that the personal assets of the shareholders and directors are separate from that of the company.
Private Limited Company registration is regulated by the Companies Act, 2013 and the Ministry of Corporate Affairs acts as the regulatory body for registration. To register a Private Limited Company in India, there must be at least 2 directors and 2 shareholders. The most important feature of a Private Limited Company is that it is the most favoured form of business structure by investors as it limits the liability of the investors only to the investment they have made in the company.
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Documents for Private Limited Company registration
- PAN card- All Directors
- ID Proof (Aadhar card/DL/Voter ID) of all Directors
- Permanent address Proof (Bank Passbook-front page/Latest utility bill)- All Directors
Address Proof of proposed Registered Office of company
- If taken on rent then NOC with the utility bill from the owner
- If not taken on rent or owned by any other entity then NOC signed by an owner
- If owned by Director then sale deed with an electricity bill
- Passport size photograph of all directors
- Main objects of the proposed company in detail
- Four names of the proposed company as per preference
- Significance of names of the proposed company
- Shareholding proportion
- Signed forms (Format provided)
Process to incorporate a Private Limited Company
The process of Private Limited Company registration involves obtaining the Digital Signature Certificate (DSC) & Director Identification Number (DIN), obtaining approval for name, creating and filing of documents with RoC and filing of an application for PAN & TAN. It takes around 15-20 days to complete all the legal formalities to register a Private Limited Company in India. This time period is subject to the time taken by government authorities to process the application.
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