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APPLY FOR PRIVATE LIMITED COMPANY REGISTRATION

PRIVATE LIMITED APPLICATION FORM

READ THE INSTRUCTION CAREFULLY TO FILL THE PRIVATE LIMITED APPLICATION FORM

APPLICANTS ARE REQUIRED TO ENTER HIS/HER NAME AS MENTIONED ON AADHAR CARD.
APPLICANTS ARE REQUIRED TO ENTER HIS/HER CORRECT INDIAN MOBILE NUMBER. NO NEED TO ENTER THE COUNTRY CODE.
APPLICANTS ARE REQUIRED TO ENTER HIS/HER CORRECT EMAIL ID.
APPLICANTS ARE REQUIRED TO ENTER HIS/HER COMPLETE ADDRESS INCLUDING THE PINCODE.
SELECT YOUR STATE FROM THE GIVEN OPTIONS.
SELECT YOUR STATE FROM THE GIVEN OPTIONS.
SELECT NUMBER OF DIRECTORS FROM THE GIVEN OPTIONS.

What Is a Private Limited Company?

Under section 2 (68) of the companies Act, 2013, a Private Limited Company is a company having a minimum paid-up share capital and which by its articles -

  • ⦿ Restricts the right to transfer its shares,
  • ⦿ Limits the number of members to two hundred, except for One Person Company(where two people jointly hold one or more shares, they may be treated as a single member)
    • Provide that persons are currently in the employment of the company, or,
    • Persons who were members while their employment ceased will not be included in the number of members.
  • ⦿ Prohibits trading of shares publicly.

Requirements Of A Private Limited Company

A company must fulfill the following conditions to be registered as a Private Limited Company:-

  • ⦿ Minimum 2 shareholders and 2 directors
  • ⦿ The shareholders can either be individuals/ companies/ or any LLPs but the Director must be an individual only.
  • ⦿ It is unnecessary that the shareholders become the Directors and as obvious, it isn't necessary that Directors need to be shareholders in the company.
  • ⦿ There are no minimum requirements for authorized as well as paid capital.

Features of a Private Limited Company

  • ⦿ A Private Limited Company is a separate legal entity and works independently under its own brand name.
  • ⦿ A Private Limited Company continues to exist even in cases of bankruptcy, death, insanity, or change in membership.
  • ⦿ A minimum of two directors is required to form a private limited company and out of them, one must be an Indian citizen.
  • ⦿ The maximum number of members a Private Limited company can accommodate is 200.
  • ⦿ Private Limited Companies need to be operated with a minimum paid-up capital of around 1 lakh.

How to Register A Private Limited Company?

The process of registering a Private Limited Company is quite simple and hassle-free. Here is a step by step guide on how to register a Private Limited Company:-

  • ⦿ Visit our website https://filinglounge.com/ and click on the Business Formation tab and select Private Limited company from the drop-down menu.
  • ⦿ A form containing basic details regarding the applicant's name, mobile number, email ID, address, state, and the amount of capital is to be filled up and Submitted.
  • ⦿ Pay the required fee by choosing among the various payment options available.
  • ⦿ Our executives will assist you with a call shortly to carry out the application process to the next level.

The Documents Required For Registering A Private Limited Company.

The following list of documents are required when an individual stakeholder is applying for registration of a private limited company:-
  • ⦿ PAN card of the would-be Director
  • ⦿ Any of the self-attested valid address proof such as Electricity Bill/ Mobile Bill/ Bank account statement (not older than two months)
  • ⦿ Aadhar card
  • ⦿ Valid ID proof such as Passport/ Driving License/ Voter Id card
In case the Company is a corporate body and the stakeholder is not an individual, the following list of documents are required:-
  • ⦿ Photocopy of the PAN card with a seal and signature of the Authorized person.
  • ⦿ Letter of Consent from the Board
  • ⦿ Any of the address Proof such as Electricity bill/ mobile bill/ Bank Account statement not older than two months.
  • ⦿ Address proof of the Office is also required to be submitted

Note: The documents have to be self-attested copies and should be properly scanned. Also, all the bills should not be older than two months.

Advantages of a Private Limited Company

  • ⦿ Perpetual succession- Private Limited companies follow the policy of perpetual succession and therefore, the company once formed, continues to exist irrespective of the change in ownership, death, or even bankruptcy.
  • ⦿ Limited Liability- Private Limited companies are created with a view to limit the liability on the shareholders/ directors. In cases where the company faces financial crunches, the director’s shares are frozen and safe.
  • ⦿ Equity funding- As the shares of the shareholders and the directors are separate in a Private Limited Company, the company can opt for equity funding and raise the capital input by selling shares.
  • ⦿ Great Borrowing power- Private Limited Companies come with low risk and therefore seem more approachable to banks and other financial institutions when it comes to lending money. The companies can issue shares, debentures, and funds to generate capital, and hence, they seem more favorable and less risky.
  • ⦿ Endless opportunities for expansion- Private Limited Companies enjoy multiple opportunities when they are trying to expand within the country or even outside the borders. The scope of expansion is quite large and even foreign companies are on the lookout for private companies for investing their capital in.
  • ⦿ Great credibility- When it comes to the legal side, the LLPs are imposed with lesser restrictions and don't have to abide by the compliances.
  • ⦿ No mandatory audit- Private Limited Companies have to provide a lot of information available to the registrar and therefore, a lot of information lands upon the public domain and is available to everyone. This transparency increases the credibility of the company to a greater extent.
  • ⦿ No restriction on the number of partners-Although LLPs need to be formed with a minimum of 2 partners, there is no specification on the maximum number of partners it can have.
  • ⦿ LLP is the sole entity- Although LLPs need to be formed with a minimum of 2 partners, there is no specification on the maximum number of partners it can have.

The Pitfalls of Registering a Private Limited Company

  • ⦿ There can be a conflict of interests between shareholders and directors.
  • ⦿ The various legal formalities associated with the registration of Private Limited Companies can be quite overwhelming and complying with all the government rules and regulations can cause a burden for some.
  • ⦿ As private Limited Companies need to provide all their details open to the general public, therefore, nothing remains personal.
  • ⦿ Private Limited Companies restrict the transference of their shares to the public.

Conclusion

We at Filinglounge assist you in registering your Private Limited Company with utmost ease. We have a team of experienced professionals to take care of all the requirements including the documentation and ensure timely support and proper management. Please Follow our Facebook page for regular updates.

Frequently Asked Questions

1. How much time is required for the formation of a Private Limited Company in India?

Nowadays, the procedure for the formation of a private limited company has been shortened to quite an extent. For more information and any inquiry, please follow our Facebook page or mail us at care@filinglounge.com

2. Do Private Limited Companies list their shares on the stock exchange?

No Private Limited Companies cannot list their shares on Stock Exchange and thus are not available to the normal public.

3. How many Directors and Shareholders does a Private Limited Company can have?

A Private Limited Company can have a minimum of 2 Directors and a maximum of 15 directors. The minimum number of shareholders must be 2 and the maximum number is 200.

4. Do Private companies are a great source of foreign investment?

Yes, foreign investors get quite attracted to the growth potential of private companies.

5. What amount of tax is payable by Private Limited Companies?

Private Limited Companies that have an annual turnover of fewer than 400 crores are taxed 30% of their total income while the companies whose turnover crosses 400 crores are taxable at 25% of their total income. Apart from this, the income tax surcharge, education cess, secondary and higher education cess are also applicable to them.

6. Can one person form a Private Limited Company?

Under the Companies Act 2013, the government has laid the rules for starting a One Person Company Private Limited, hence, a single individual can incorporate a Private Limited Company with one director only.

7. How to close my Private Limited Company?

Shutting down a private Limited Company can be done in three ways:-
Selling off- one of the ways is by selling off the shares to another person/company and thereby transferring all the rights and responsibilities to the other person.
Strike off the company- a company that has not been functional in the past can get its name struck off from the Registrar of the Ministry by applying in the Fast Track Exit form.
Winding up - Any company whose partners decide to close down by mutual agreement can do so and after the winding-up, the relevant documents must be presented before the court for getting the order of dissolution.

8. Is it necessary to get an audit done in a PVT. LTD. company?

Yes, as per the Companies Act, 2013, any startup or an established company needs to get a mandatory account audit done. After the incorporation of the company, it is mandatory to appoint an auditor within 30 days.