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
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.
Documents required for obtaining the Private Limited Registration in India
Identity proof the 2 Directors and submit the documents that are mentioned below:
In addition to the above, the following must also be provided as proof of registered office:
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.
Features of a Private Limited Company
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.
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
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.
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
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.
There exists no bar on turnover or capital in private Limited Company unlike One person 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.
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.
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.
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.
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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