Private Limited Company registration is the most popular and established legal structure for businesses in India. A minimum of two members are required to establish a private limited and can have a maximum of fifty members. In private limited companies, directors have limited liability to creditors. In a case of any default, banks and creditors can only claim and sell the company’s assets not the personal assets of directors. Most of the start-ups and growing businesses prefer private limited company as it allows easy fundraising from outside, limits the liabilities of its shareholders and supports them to offer employee stock options to attract top talent.
Private Limited Company holds benefits such as having limited liability, less compliance with the company’s act 2013, ease of formation and winding up, ownership separation and management, etc. Distinctive features of a private limited company like separate legal entity status, limited liability protection to shareholders, ability to raise equity funds and perpetual existence make it the most endorsed business entity type for small and medium-sized businesses that are family-owned or professionally managed. If you want to register your own company in India then Young and Right are providing services related to company registration. You will be thoroughly guided company for a new company formations procedure and our team of experts will assist with all the company registration information.
After submitting the documents the next step is to obtain the proposed Director is digital signature (DSC) and DIN.
Details provided will be verified and apply for name approval. Maximum 2 names can be provided for name approval of the company.
Complete all the required documents and file them with ROC for the incorporation.
Finally, get company incorporation certificate along with PAN and TAN. Once the company is incorporated, you will get all the documents and DSCs.
Limited Liability
Limited Liability means the liability of the members for the company’s debts is limited. Therefore, where a company is limited by shares, the liability of the members is limited to the amount unpaid on their shares.
Greater Credibility
The information relating to the company is structure, operations, and financial health is publicly available to the vendors, lenders, employees. Transparency of company information makes a business more credible.
Separate Legal Entity
A company is a separate legal entity separate from that of its members. Therefore it has wide legal capacity and can own property and also acquire debts. The Shareholders and Directors have no liability to the creditors of a company.
Uninterrupted Existence
A company has continuous progression until it is legally dissolved. It exists irrespective of the changes in membership which is one of the most important characteristics of a company.
Easy Funding
Private limited companies easy access to equity funding as there is a clear distinction between shareholders and directors. Therefore private limited companies can raise money easier than other business structure types.
A type of company that offers limited liability as defined in the company’s bylaws for its shareholders and certain restrictions on its ownership. A private limited is a separate legal entity with a minimum of 2 persons.
No professional or educational qualification is required for director or shareholder in the private limited company.
Yes, any small business can get register under private limited company in India. It provides businesses with the credibility.
The person should be: Mentally sound Adult Citizen or resident of India
The Registered Office could be owned rented. The purpose of the registered office is to hold general meetings, keeping records and receiving correspondence.
Yes, the registered office of the company can be changed easily at any time following a specified procedure. The new address can be located within the same state or in a different state, depending upon the conditions.
Yes, a sole proprietorship can be changed into private company as per the companies act, 2013 procedures.