A Company limited by Share and incorporated with a Share Capital of Rs 1, 00,000 is called as Private Limited Company. Private Limited Company is easy to start up with minimum 2 directors, and with less compliance with registrar compared to other companies. These kinds of companies are closely held businesses usually by family, friends and relatives.
Private companies may issue of share/stock and have shareholders. However, their shares do not trade on public exchanges; Shareholders may not be able to sell their shares without the agreement of the other shareholders. Private limited company’s disclosures are lighter. A shareholder’s personal assets are protected in case of company’s insolvency.
Benefits Of Private Limited
Suitable for closely held groups.
Minimum number of shareholders need to start the business are only 2.
Limited Liability: It means that if the company experience financial distress because of normal business activity, the personal assets of shareholders will not be at risk of being seized by creditors.
Continuity of existence: business not affected by the status of the owner.
More capital can be raised as the maximum number of shareholders allowed is 200.
Registration Of A Private Limited Company
Initial level discussion between the entrepreneurs and the Aanoor Global team.
Getting DSC [DIGITAL SIGNATURE CERTIFICATE] to all Directors for digital authentication of the forms to be filed with Ministry of Corporate Affairs.
Getting DIN [DIRECTOR IDENTIFICATION NUMBER] is a pre-requisite for incorporation process for all Directors.
Company name availability and draft Object Clause confirmation from client.
Filing of Form for Name Approval & Incorporation to the concern ROC [Registrar of Companies] where the client’s registered office going to be situated.
Getting the Company Incorporation Certificate (Registration) , Memorandum & Articles with PAN and TAN from the Registrar.
Minimum of Two Directors and Shareholders required. Both of them may be same.
Minimum share capital should be Rs 1,00,000 /- [one lakh rupees].
DSC [DIGITAL SIGNATURE CERTIFICATE] & DIN [DIRECTOR IDENTIFICATION NUMBER] for all Directors.
Require Documents PAN Card (for Indian Resident), Address & ID proof of all Directors.
Address proof of proposed registered office address for registration of company.
Growth may be limited because maximum shareholders allowed are only 200.
The shares in a private limited company cannot be sold or transferred to anyone else without the agreement of other shareholders.