About Private Limited Company

Private Limited as it name denotes is such form of business managed by the private or close group of people. This form of business have a separate legal identity in the eyes of law, in layman language it is a artificial person. The people who invest money in this form of Business are known as Shareholders and the people who manages the day to day affairs are known as Directors of the Company. This form of Business is the most popular type of business in India.

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Register my Private Limited Company

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Our scope of work

    1. Any amount of Capital;

    2. Application of 2 Digital Signatures (validity 2 years);

    3. Name Approval;

    4. Drafting of Memorandum and Articles of Association;

    5. Drafting of other additional documents;

    6. Preparation of various eforms;

    7. PAN & TAN Application

    8. EPF and ESIC Registration (through MCA) 

    9. Professional Tax Registration (through MCA) 

    10. Resubmission of eforms, if any;

    11. Obtaining Certificate of Incorporation from Registrar

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Know more about Private Limited Company

Private Limited Company

A Private Limited is a Business Entity that is distinct from its Shareholders and/or directors having continuous succession and limited financial obligation. It should have a minimum of 2 directors and 2 Shareholders. The word 'Private' denotes that the general public cannot be invited to buy its Shares and 'Limited' denotes that the Liability of the Shareholders and directors is restricted. This type of business entity limits owner liability to their shareholdings, the number of shareholders to 200, and restricts shareholders from publicly trading shares. It is the most prevalent and popular type of corporate legal entity in India.

1. How many Director are required in Private Limited Company?

  • Minimum no. of directors required are 2 out of which 1 shall be Indian Resident.

  • Any person can be a director of the company including family members

  • Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a director of the company

  • Directors are the managers and they are responsible for day to day functioning of the company.

2. Who are the Shareholder of the Company?

  • Minimum no of shareholders required are 2

  • Director and Shareholders can be the same

  • Shareholders are the owners of the company

3. What are the types of Share Capital?

  • There are 2 types of capital i.e. Authorize Capital (It is the capital up to which company is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)

  • There is no such requirement for minimum capital, hence the company can be formed with the capital starting from INR 1

4. What is Registered Office of the Private Limited Company? 

  • Any place can be made as the registered office of the company even the residential place can be used as the registered office of the company.​​​​​​

5. Who is the Registering Authority of the Private Limited Company?

  • Ministry of Corporate Affairs.

6. What documents are required for formation of Private Limited Company?

> Proof of Registered office address (Conveyance/ Lease deed/Rent Agreement/Maintenance Bill)

> Copy of the utility bills of the registered office (Electricity Bill/Telephone Bill not older than two months)

   Directors / Shareholders

> PAN Mandatory- Indian National / Passport – Foreign National

> Proof of Identity – Voter Id/Passport/Driving License

> Proof of Address (Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill not older than 2 months)

*All documents for Indian National – To be self-attested

*All documents of Foreign National – To be self-attested & apostilled

Obtain Digital Signature Certificate (DSC)

01

Prepare SPICe+ form (Part A – Name availability and reservation request)

02

Prepare SPICe+ Part B form (Company information i.e. directors, capital etc.)

03

Prepare e-form SPICe+ MOA (INC-33) ,SPICe+ AOA (INC-34) and SPICe+ AGILE-PRO (INC-35)

04

Download all the e-forms prepare online and affix DSC on all the e-forms.

05

Attached the require documents with form SPICe+ and upload the e-forms to MCA portal.

06

Verification of documents / forms by RoC

07

Issue of Certificate of Incorporation by RoC

08

Advantages

The Company exists as a separate legal entity as from its members. The liability of the corporate is completely different as from its members of a corporation. Liability for repayment of debts and lawsuits incurred by the corporate, lies on the it and not the owner.
An incorporated company has perpetual succession. Perpetual Succession means that the corporate shall still exist notwithstanding the member dies or ceases, etc. Changes at intervals the management doesn't bring any have an effect on to the identity of the corporate, the corporate can stay a similar with same privileges, immunities, estates and possessions. The corporate shall still exist until its tense in accordance with the provisions of the relevant law.
The shares and alternative interest of any member within the Company shall tend to be a movable property and may be transferable within the manner therefore provided by the Articles of such company. Therefore, it's easier to subscribe or leave the membership of the corporate, conjointly it's easier to transfer the possession.
It is easy to sell business for a company than any other business form. As business Corporation value will be based on the business, not the owner, therefore making it easy to sell the Company.
Private limited companies must submit its annual returns, financial statements, Board reports etc to the Registrar of Companies annually. Every private limited must get its accounts audited by a practicing Chartered Accountant, which makes it mandatory to appoint a chartered accountant as auditor of the company; even there is no significant accounting transaction. Further there are many event based compliance requirements too. So in order to meet legal obligations casted on private limited companies by the Companies Act, 2013 and others statues, a company must have a competent professional by its side to advise and help in ensuring statutory compliances, which increases the general and administrative expenses of a business.
A Company as a legal entity is capable of owning its funds and alternative properties. The corporate is that the real person in whose hands all the property is unconditional and such company has the only real right to regulate, manage and dispose off the property therefore unconditional within the hands of the corporate. The property of Company isn't the property of its shareholders.
As everyone wants to minimize his tax burden thus company as per the income tax act 1961 has another main benefit of incorporation towards taxation. Companies are often taxed at a lower rate and are provided with better taxable benefits as compared to other forms of business organization.
Raising money as a small business and a sole proprietorship or partnership can be difficult. But as per Companies act 2013 a company can sell shares to the public or can accept deposits from public and can therefore raise money easier than other business structure types. The modes of financing business carried on by company are numerous. Moreover, since the companies are governed by particular law and have to comply with stringent disclosure norms, therefore they enjoy good credit worthiness with various financial institutions.
As a juristic legal person, a Company can sue in its name and be sued by others.
Companies are governed by The Companies Act, 2013 and have to follow various other regulatory procedures during the course of its governance, moreover they have to comply with the stringent disclosure norms so imposed by the authority, which let to better governed organizations and creation of value for owners.

Disadvantages

Private Limited Corporation cannot get its shares listed in any stock market through initial public offerings. With this restriction, private limited corporations might notice it troublesome to attract outside investors to buy the shares.
A Private Limited Corporation should file its Annual Returns, financial Statements, Auditor’s reports, Board’s Report etc to the Registrar of Companies, that become public document once filed with Registrar of companies and will be inspected by general public as well as competitors by paying some fees to the Registrar of Companies. Data revealing will create an entity competitively underprivileged. Competitors – especially those not required to disclose any documents – will access that data and use it to enhance their own business.
Private Limited Corporation should submit its annual returns, financial statements, Board reports etc to the Registrar of Companies annually. Every Private Limited Corporation should get its accounts audited by a practicing Chartered Accountant, that makes it obligatory to appoint a Chartered Accountant as Auditor of the company; even if there's no significant accounting transaction. Thus so as to satisfy legal obligations casted on Private Limited Corporations by the Companies Act, 2013 and others statues, a corporation should have a competent skilled by its aspect to advise and facilitate in ensuring statutory compliances, that will increase the overall and administrative expenses of a business.
When promoters arrange to privately issue shares to outsiders, they invite additional owners into the business. With reduced control, promoters generally cannot make and execute important decisions while not consulting with other shareholders.
Shares in a Private Limited Corporation cannot be sold or transferred to anyone without the consent of the Board of directors. Additionally, a shareholder should make an offer to the prevailing shareholders of the corporate before selling it to an outsider. This amounts to inefficiency, since investment choices might not be made and executed during a timely manner.
Factors of Comparison Private Company Public One Person Company Limited Liability Partnership Partnership Sole Proprietorship
Capital Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit Min: INR 1 & Max:2 Crore Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit
Director Minimum 2 Minimum 3 Minimum 1 - - -
Shareholder Minimum 2 Minimum 7 Minimum 1 - - -
Designated Partner/Parter - - - Minimum 2 Minimum 2 -
Taxation 30%(25% if turnover does not exceed 250 Crore) 30%(25% if turnover does not exceed 250 Crore) 30% 30% 30% As per Slab Rates
Statutory Audit Compulsory Compulsory Compulsory If Contribution exceed INR 25 Lacs; If Turnover exceed INR 40 Lacs Not Required Not Required
Investor Preference High Low Low Medium Very Low Very Low
Compliance Cost Mdeium High Low Low Low Low
Regulator Registrar of Companies SEBI/Registrar of Companies Registrar of Companies Registrar of Companies Registrar of Firms -
Time take for Registration 5-7 working days 5-7 working days 5-7 working days 20-25 working days 10-12 working days 5-7 working days