Private Limited Registration

Private Limited Registration Online

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Private Limited Company Registration

A private limited company (Ltd) is a type of privately held business entity in which the liability of its members or shareholders is limited to what they have invested or guaranteed to the company. This business structure is common in many countries and is known for its distinct features and advantages. Here is a detailed overview of private limited companies

Key Features of Private Limited

Limited Liability: Shareholders’ liability is limited to the amount they invested in the company. Personal assets are protected from business debts and liabilities.
Separate Legal Entity: A private limited company is considered a separate legal entity from its owners. It can own property, incur debt, sue or be sued in its own name.
Ownership and Shares: Ownership is divided into shares, and shareholders are the owners of these shares. Shares are not publicly traded, making it easier to control who owns the company.
Minimum and Maximum Number of Members: Typically, a private limited company requires at least one shareholder and can have a maximum of 200 shareholders (the exact number can vary by jurisdiction).
Management: The company is managed by a board of directors elected by the shareholders. Day-to-day operations are handled by appointed officers or managers.
Perpetual Succession: The company’s existence is not affected by the death, retirement, or departure of any of its members. It continues to exist until it is legally dissolved.
Compliance and Regulation: Private limited companies are subject to regulatory and compliance requirements, including filing annual financial statements and other reports with the relevant authorities.

Advantages of Private Limited

Limited Liability Protection: Shareholders’ personal assets are protected from the company’s debts and liabilities.
Continuity of Existence: The company continues to exist beyond the lives of its original shareholders.
Ease of Raising Capital: It is easier to attract investors since they can invest without taking on personal liability.
Professional Image: Having a registered company can enhance the credibility and professional image of the business.
Flexibility in Ownership: Shares can be transferred, though often with restrictions to maintain control over who becomes a shareholder.

Procedure To Register Private Limited

Step-1: Apply for the Name Availability

You need to provide 3 different options for your company name to MCA of which one will be selected. The name provided should ideally be unique and suggestive of company business.

Step-2: Apply for DSC & DIN

All the partners have to apply for digital signature and DIN (Director Identification Number).

Step-3: Prepare for Documents

Key documents include the Memorandum of Association and Articles of Association, outlining the company’s structure and operating rules.

Step-4: Certificate of Incorporation

It typically takes 10-15 days to from a private limited company and get the Incorporation certificate. is proof that company has been created.

Documents Required for Private Limited Registration

Copy of pan card of directors
Copy of Aadhar card/ voter identity card of directors
Passport size photograph of directors
Electricity /Water bill (Business Place)
Copy of property paper (if owner property)
Landlord NOC (format will be provided)
Copy of rent agreement (if rented property)
Past 3 months current bank statement of members

Minimum Requirement of Company Registration

Directors

A minimum number of two directors is required for registering the private limited company. Each of the directors should have DIN i.e. director identification number which is given by the ministry of corporate affairs. One of the directors must be a resident of India which means he/she should have stayed in India for not less than 182 days in a previous calendar year.

Name

It is one of the major components of a private limited company. All private companies must use the word private limited company at the end of their name. Every company has to send 5-6 names for approval to the company’s registrar, and all the names should be unique and expressive. The name for approval should not resemble any other company’s name. So choosing the right company name is an important component that will stay with the company throughout its life.

Registered office Address

The registered office of the company is where the company’s main affairs are been conducted and where all the documents are placed. While going for the registration of the company, the owner should provide the temporary address of the company until it does not get register.

Obtaining a Digital Signature Certificate

Every company must obtain a digital signature certificate which is used to verify the authenticity of the documents. A digital signature obtained by all the director which are marked all the documents by every director.

Paid up Capital

The Companies Act 2013 mandated that all private limited companies will have to keep a minimum paid up capital of Rs 1 lakh. This provision meant that Rs 1 lakh worth of money have to be invested in the company by purchase of the company’s shares to start business.

Professional Certificate

A company there are many professionals which have required for many purposes. For incorporating a private limited company certification by these professionals are necessary. Various professionals such as company secretary, chartered accountant, cost accountant, etc are required to make their certification at the time of company incorporation.

Advantage of Private Limited Company

Equity Raise

A company can raise capital from persons or entities interested in becoming a shareholder.

Limited Liability Protection

A private limited company provides limited liability protection to its shareholders. In case of any unforeseen liabilities are create it would be limited to the company and would not impact the shareholders.

Separate Legal Entity

A private Limited company is legally recognized as a separate entity. Hence a company can have its PAN, Bank accounts, Approvals, Contracts, Assets and liabilities in its unique name.

Restricted Trade of Shares

This is an advantage to some shareholders because shareholders who want to sell their share cannot sell them to outside buyers. Shareholders must also agree to the sale or transfer of shares. The risk of hostile takeovers is low.

Continued Existence

Another advantage of a private limited company is its continued existence, even after the owners die or leave the company. A private limited company differs from a sole proprietorship in that the latter is owned by a single individual who is personally responsible for the business debts and essential to its continued existence.

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Private Limited Related Services

Bizlaw India Provide a Complete Private Limited Related services

GST Registration

MSME Registration

Private Limited Compliance

Trademark Registration

Website Design

Startup India Certificate

Frequently Asked Questions

What is a Private Limited Company?

A Private Limited Company is a business entity held by private shareholders. The liability of the members is limited to the number of shares held by them.

What are the main characteristics of a Private Limited Company?

Limited Liability: Shareholders’ liability is limited to their shareholding.
Separate Legal Entity: The company is distinct from its shareholders.
Perpetual Succession: The company continues to exist even if the owners change.
Restricted Transferability: Shares cannot be freely transferred.

What are the benefits of registering as a Private Limited Company

Limited liability protection for shareholders.
Ability to raise equity capital.
Separate legal identity.
Enhanced credibility and reputation.

What are the prerequisites for registering a Private Limited Company?

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How do I register a Private Limited Company?

Obtain DSC for proposed directors.
Obtain DIN for proposed directors.
Apply for name approval through the RUN (Reserve Unique Name) form.
File the incorporation application (SPICe+) along with MOA (Memorandum of Association) and AOA (Articles of Association).
Obtain Certificate of Incorporation (COI) from the Registrar of Companies (RoC).