A Private Limited Company is a business entity hosted by a small group of people. It is owned by a group of members called shareholders.
Startups and businesses with higher growth aspirations popularly choose Private Company as a suitable business structure.
According to the Companies Amendment Act, a Private company is one which: (i) has a minimum of two and maximum of 50 members to transfer their shares (ii) does not offer its shares to general public (iii) has a minimum paid up capital of Rs. 1,00,000.
It is an ideal form of organisation for the public who wish to run a large scale business without involving large shareholding groups.
A private company must use the words "Private Limited" or "Pvt Ltd" after its name.
Flipkart, Amazon India etc, are examples of Pvt. companies in India.
What are the documents required for Pvt Ltd Company Registration?
Following are the required documents for it's Registration :
Documents for Identity Proof:-
For Indian Citizens/Nationals - PAN Card
For Foreign Citizens/Nationals - Passport
Documents for Proof of Address:
For Indian Citizens/Nationals - Passport/Driving license/Voter ID/Ration card/Aadhaar ID
For Foreign Citizens/Nationals - Passport/Driving license/Bank statement/Residence card
Documents for Proof of Residence:-
For Indian Citizens/Nationals - Electricity bill/Phone bill
For Foreign Citizens/Nationals - Bank statement/Electricity bill/Phone bill
Documents required in case a company is a shareholder:-
Board resolution that authorized the investment in the company/Incorporate certificate of the company/Address proof of the company
Benefits of Pvt Ltd Company Registration
Improved Credibility :
The credibility of the private limited company increases after it is registered as a corporate entity.
Separate Legal Entity :
A company after registration gets a separate legal entity.It becomes an artificial person and has its own name separate from its shareholders.
Limited Liability :
As the company obtains a separate legal entity it's shareholders becomes limited.The shareholders only carry liability up to the face value of their share. The remaining liability is borne by the company itself.
Sue and Can be Sued :
A company having its own existence once it is registered so it can sue others in it's own name, however it can be sued as well.
Own Property :
A company can own property such as machinery, building, land, residential property, factory etc, in it's own name. As long as the company is a going concern no one can make a claim on it's property.
Attract Funds and Foreign Investments :
The company after it's registration can attract more funds in the form of equity, debt funds as well as Foreign Direct Investments (FDI).
Uninterrupted Existence :
A company after registration has perpetual succession, that is the company's life is not interrupted by departure or death of it's members. It will continue to run until it is legally dissolved irrespective of changes.
After submission, our executives will analyse and process your application.
You will receive your Private Limited Registration via your registered email-id
If you're willing to start a business/Stratup with only a few members in mind, you can register your company under Pvt Ltd. There are various privileges that are enjoyed by a Pvt Ltd company under The Companies Amendment Act.
Filinglounge will help you to register your company as Private Limited. You can connect with our team for the registration process and other details.
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