Private Limited Company Registration/Formation
Private Limited Companies are those types of companies where minimum number of members is two and maximum number is two hundred. Start-ups and growing businesses choose to Register a Private Limited Company in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. Identifying marks of a private limited company are name, number of members, shares, formation, management, directors and meetings, etc., The maximum number of directors shall have to be mentioned in the Articles of Association.
Private Limited Company is the most preferred format of company registration by most of the entrepreneurs in India. Because of the flexibility in decision making, easy access to the banks for loans and approach towards investors to raise funds without much restrictions, made Private Limited Company a most successful business structure in India.
Documents Required for Company Registration
TO BE SUBMITTED BY DIRECTORS & SHAREHOLDERS
- Scanned Copy of PAN Card or Passport (Foreign Nationals & NRIs).
- Scanned Copy of Voter’s ID/Passport/Driving Licence.
- Scanned Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill.
- Scanned Passport Size Photograph
Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).
FOR THE REGISTERED OFFICE
- Scanned Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Scanned Copy of Rent Agreement(if rented property) or NOC from Property Owner.
- Scanned Copy of Sale Deed/Property Deed (in case of owned property).
Note: Your registered office need not be a commercial space; it can be your residence, too.
Advantages of Private Limited Company
The greatest benefit of private limited companies is limited liability. Private limited companies, are treated as a single entity, making the company responsible for all debts. If anything happens to the company, its members are not personally affected; members are only liable for unpaid amount on shares subscribed by them.
Finance and Resources
When more resources or large-scale production is necessary, forming a private limited company protects the interests of lenders. With adequate funding, your company can produce goods at a lower cost, thus increasing profits and customer satisfaction. Furthermore, the future of the business becomes more secure.
Private limited companies enjoy permanent succession because the company is its own legal entity. Shareholders and employees act “as agents of the company, and therefore, do not effect the company if they leave. In the event of a death or resignation, the company’s Articles of Association allocate the shares to remaining members. Discontinuation of the company only occurs through liquidation or similar means. Guaranteed succession not only benefits members, but secures jobs and resources for the community.