Private Limited Company
Most popular form of a “legal structure” for all businesses in India by incorporating Private Limited Company
A private limited company is a type of privately held business entity, in which owner liability is limited to their shares. Company can have minimum 2 and maximum 200 shareholders and shares are prohibited from being publicly traded. Private limited company is the most popular corporate entity amongst small, medium and large businesses in India due to various advantages. Private Limited Companies are the most preferred option for any startup that is looking at scaling up by external funding as it is very easy in Private Limited Company to issue fresh equity shares in lieu of funding received. A Private Limited Company is recommended for any business that is considering FDI. Private limited company offers its promoters a better image or standing a designation of Director. Private limited company also enjoys better access to funding from banks and FDI.A private company can start its business as soon as it is incorporated.
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Advantages
- Limited Liability – Limited to Percentage of Shares.
- Restricted trade of shares – No right to trade shares in open market.
- Continued Existence – Separate legal entity does not deviate from the existence of members.
- Tax Bracket – Separate tax structure as per Income tax act.
Documents Required
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Name of the company (As suggested by promoter of the company and approved by MCA)
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Object/ Main Business of the company (As per promoter of the company)
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Office Address proof (Electricity bill , telephone bill )
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Photo (for all director)
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Digital signature (for all director)
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Valid mail id and phone no. (for all director)
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Declaration by the director (Format as suggested by CAVKMASKARA & Associates)
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ID Proof and Residential Address proof(for all directors) (Pan card , Aadhar card, Voter ID , Passport, Bank Statement ETC)
FAQ
Any adult individual(Inculding Foreigners /Nri)/organization can become the member of the private limited company and maximum number of sharholders in private limited company is 50.
A private limited company can start even from your home except with proper address proof.
Minimum authorised capital requirement of Rs. 100,000. However paid capital will be introduced even less than Rs.100,000.
Benefit in terms of creditability to all stakeholdrs.
Any adult individual can become a shareholder/director in a private limited company. There is no requirement of educational qualification.
Yes, A company can change its registered office any time after following specified procedure.
Yes, you as a employee in any organisation can become the director/member in private limited company.
LegalNemBrij.com can incorporate a Private Limited Company within 15 days subject to available documents and approval of Government.
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