Private Limited Company

Register Your Private Limited Company with Bizhub

A type of company that offers limited liability or legal protection for its shareholders but that places certain restrictions on its ownership.

Digital Signature Certificates

Director Identification Numbers

PAN

TAN

Starting from Rs. 5999

What is a Private Limited Company?

A type of company that offers limited liability or legal protection for its shareholders but that places certain restrictions on its ownership. These restrictions are defined in the company’s bylaws or regulations and are meant to prevent any hostile takeover attempt.

A private limited company in India is governed under the Ministry of corporate affairs (MCA). Registering a company is easy through BizHub, as it is done completely online. To register a company in India a minimum of two people are required to act as directors and shareholders. To register a Private limited company in India the Director’s PAN card, address proof, and the bank statement are required with the address proof of the registered office.

Section 2 (68) of the Companies Act, 2013 defines a private company as:

A company having a minimum paid-up share capital as may be prescribed, and which by its articles,

restricts the right to transfer its shares;
except in case of One Person Company, limits the number of its members to two hundred;
prohibits any invitation to the public to subscribe to any securities of the company.

It is highly recommendable to get a private limited company registration as this type of company offers limited liability to the shareholders with certain restrictions that are placed on the ownership.

Private Limited Company is the most popular type of business entity in India. Over 20 lakh companies have been registered in India as of October 2020 and 12 lakh companies are classified as active. All companies registered in India are governed by the MCA (Ministry of Corporate Affairs) under the Companies Act, 2013.

Requirements to register a Private Limited Company in India

No of Shareholders- 2 individuals
No of Directors- 2 individuals ( Can be 3)
Authorized Capital- Rs. 1 lakh minimum
Paid-up capital- Rs. 10,000

How BizHub will help you in registering a Private Limited company in India?

BizHub can help you in incorporating a Private Limited Company in India in less than 10 days but this is subject to government processing the availability of the documents.

Step 1

Once a request is received a business consultant from BizHub reaches to you and understands your business requirements. And suggests the best suitable entity for you.

Step 2

A relationship manager is assigned to the engagement. Who will collect all the necessary documents?

Step 3

An application is submitted for obtaining the Digital Signature Certificate. Simultaneously a name request is sent for approval to the MCA.

Step 4

Once the name request is approved the incorporation documents are drafted. These incorporation documents need to be signed by all the Directors and the shareholders.

Step 5

Once they are signed, they are sent to the MCA for approval.

Step 6

Once the company is incorporated an Incorporation certificate is provided along with the PAN and TAN for the Directors.

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Documents required for obtaining the Private Limited Registration in India

Identity proof the 2 Directors and submit the documents that are mentioned below:

PAN card

PAN Card copy of the proposed Directors of the Company will be required for Company Registration.

Residential Proof

The residential proof must also contain the name of the Director as mentioned in the PAN Card and must not be older than two months.

Address Proof

The address proof submitted must have the name of the Director as mentioned in the PAN Card and the most current address of the Director.

Registered Office Proof

In addition to providing identity, address, and residential address for the Directors, proof must be provided to validate the registered office address of the Company.

In addition to the above, the following must also be provided as proof of registered office:

The authorization from the Landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) to use the premises by the company as its registered office. This is usually referred to as NOC from Landlord;

Proof of evidence of any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which is not older than two months.

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Benefits of registering a Private Limited Company in India

Before starting a business, it is important to decide the objectives of the company, the business structure, and the operations based on which the company has been chosen. The private limited company is a privately held entity and is preferred by most entrepreneurs. The Private limited company registered in India can have 50 shareholders and limit the liability of the owner to their shares and restrict from publicly trading the shares.

Limited Liability

When the businesses see unseen financial crises and are on the verge of closure, the shareholders of the private limited company do not face the risk of losing their assets. Only the amount that is invested while starting the business is lost and the director’s assets are safe.

Access to funding

The private limited companies easily accommodate the equity funding as there is a difference between the shareholders and directors. Venture capitalists and private equity funds are likely to invest in any other structure.

Borrowing capacity

The private limited companies in India enjoy the privileges of borrowing more funds than the LLPs as there are more options of taking debt. Banks help in assisting with financial aid to the private limited companies than the OPCs and the LLPs as the debenture issue and convertible debentures are always available. The banks and the financial institutions welcome the private limited companies better than the partnership entities.

Greater credibility

A private limited company is required to make a lot of information about the structure, operations, and financials available to the Registrar of the companies. This information ends up in the public domain. Therefore, the vendors, lenders, employees can find the information that is relevant to the company such as the authorized capital, name of directors, registered office, etc. This information makes the businesses more credible than the entities that done furnish this information.

Easy exit

Private limited companies in India can be sold or transferred, either partially or in full to other individuals or entities without any disruption to the current business.

International expansion

If the business developing product on a global scale and aiming for expansion of operations across the world, then it is important to get the investments and the form of collaborations with foreign establishments. One of the advantages of the private limited companies in India is that 100% through the automatic route, which means there is no requirement of any government approval for foreign companies to make investments in India. The partnerships, LLPs need acceptance from the government.

Scope of multiple opportunities

Successful entrepreneurs are always on the lookout for opportunities wherever they are possible. The private limited companies have the scope of utilizing the chances as the business grows over time whereas the sole proprietorships and the partnerships cannot take up as they are tied up.

Better governance

As private limited companies are regulated by the Companies Act 2013 and are required to follow all the stringent procedures, disclose norms, and also comply with the various legal requirement, they are more organized in creating value.

Features of a Private Limited Company

Members:

To register a Private Limited Company in India a minimum of 2 members are required and a maximum of 200 members are required as per the provisions of the Companies Act,2013.

Limited liability to the partners:

The liability of each member of the shareholders is limited. In case if the company is facing any loss under any circumstances, then the shareholder is liable to sell Company’s assets. His personal assets are not at risk here.

Perpetual succession:

The Private limited company that is once registered keeps on existing in the eyes of the law even in the case of death, bankruptcy, or insolvency of any of the members. The life of the company keeps on existing forever.

Index of the members:

A private limited company has a privilege over the public company as they do not need to maintain the index of the members whereas the Public limited companies are required to maintain the index of the members.

Number of Directors:

A private limited company in India is required to have only two directors. With the existence of 2 directors, a private limited company can begin with its operations.

Memorandum of Association:

The Memorandum of Association represents the charter of the company. The MOA is the legal document that is prepared during the formation and the registration process of the company. The MOA specifies the relationship between the shareholders and it specifies the objectives for which the company is formed.

Articles of Association:

The AOA lays the rules and the regulations that are set for the internal management of the Company. The duties, rights, and powers of the management of the company are specified in the AOA. An article of association is a subsidiary of the Memorandum of association

FAQs On Private Limited Company

How many directors are required in a Private Limited Company?

A Private Limited Company must have a minimum of two Directors and can have up to a maximum of fifteen Directors. But if you are a sole owner, you can incorporate an OPC as well.

I wish to start my business, but I am confused between Private Limited Company and LLP, what should I select?

Pvt. Ltd. Co. and LLP have a lot of similarities yet they both are different in many of its characteristics and structures. When you wish to start your business, there are many factors that one needs to think upon before selecting any business structures. However, before selecting any business structure, you may refer LLP vs Pvt Ltd- A comparison between two important forms of organisation in India

How long will it take to incorporate a Company in India?

It generally takes 8-10 working days to register Private Limited Company in India. The time taken for registration totally depends on the submission of relevant documents by the client and the speed of Government Approvals. To ensure quick and speedy registration, choose a unique name for your Company. The registration fees for the incorporation is inclusive in the package offered to you.

What is the minimum turnover and capital required for Pvt.Ltd.Co. in India?

There exists no bar on turnover or capital in private Limited Company unlike One person Company.

How can I register an Indian Company?

Incorporating a company through Simplified Proforma for Incorporating Company electronically (SPICe plus), with eMoA (INC-33), eAOA (INC-34), is the default option and most companies are required to be incorporated through SPICe only.

Can one person start a Pvt. Ltd. Co. in India?

Minimum two directors are required to incorporate a private limited company. Companies Act, 2013, has introduced the concept of One Person Company (OPC) private limited, in which a single individual can start a private limited company. Thus, if you plan to incorporate OPC, you can incorporate it with only one director.

What do you mean by Digital Signature Certificate (DSC)?

The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of the proposed Company. Digital Signature application is to be filed to get a DSC.

Can a Foreign National or an NRI be a Director of a Private Limited Company?

Yes, a Foreign National or an NRI can become a Director of a Private Limited Company in India after obtaining Director Identification Number (DIN). However, it may be noted that at least one Director on the Board of Directors must be a Resident India.

Which Cities do you provide Company incorporation services?

BizHub provides Private Limited Company incorporation services online across India. You can get your Private Limited Company registered in Ahmedabad, Mumbai, Pune, Bangalore, Chennai, Delhi, Kolkata, Kanpur, Nagpur, Jaipur, or any city in India by us.

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Private Limited Company