Meaning of Private Limited Company?
_______________________________________________________________________________________
.
Private Limited Company registration is the most popular form of a “legal structure” for all businesses in India. A private limited company can have a minimum of two members and a maximum of fifty members. The directors of a private limited company have limited liability to their creditors and Banks/Creditors are allowed to sell only the assets of the company (when there is a scenario of default).
The creditors do not have the authority to sell the personal assets of directors. Do ensure that your company is registered, for starting a company in India
.
.
Why Register a Private Limited Company In India?
=================================================================
Entrepreneurs choose to register a company due to various reasons. Two of the main reasons is that a company is a distinct legal entity having perpetual succession. Hence, a company is not affected by the death, insanity, or insolvency of an individual member. The following are some of the top reasons to register a private limited company in India.
A. Owning Assets
.
A company can acquire, own, transfer any type of tangible or intangible asset in India. A shareholder is not eligible to claim the company’s property, as they are not owners of the company. A shareholder merely has an interest in the company
arising under the articles of association of the company, measuring a sum for liability.
.
C. Perpetual Succession
.
Perpetual succession means continuing or enduring forever. A company is considered to be legally active until it is wound up by its members through a legal process. Hence, perpetual succession denotes continuous existence of a corporation or company till it is dissolved legally. Thus, a company is unaffected by death or departure of any member.
.
E. Separate Legal Entity
.
As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts – while the individual company members owe no liability towards the company’s creditors for debts.
B. Equity Raising
.
A company is the only type of legal entity which can help the promoters raise equity funding from Angel Investors, Private Equity Firms and the Stock Exchange. A private limited company would suffice for raising equity funds from Angel Investors and Private Equity Investors. In case of listing or allotment of shares to more than 200 shareholders, a Limited Company would be required.
.
D. Limited Liability
.
Limited liability is a legal responsibility towards a limited amount of debts. The liability of the members with reference to company’s debts are limited i.e.; limited to the face value of the share purchased by them. This limited liability protection is often not afforded to Directors of a company – who are held responsible for operation of a company.
.
F. Transferability of Shares
.
The ownership of a private limited company is determined by the number of shares held by its shareholders. Shares of a company can be transferred to any other person or legal entity in India or abroad, subject to the articles of association of a company and the shareholders agreement. The easy transferability of shares is one of the top reason, Entrepreneurs opt to register a company.
.
.
Step By Step Process Guide to Registration of A Company
============================================================================
.
Document submission
Company Name Approval
Digital Signature Certificate
SPICe+ form application
Company Incorporation
.
.
.
.
Required documents for A Company Registration
====================================================================
.
Here are List of required documents for Private Limited Company Registration:-
.
- Pan Card of all directors.
- Passport size photograph of the same must be down.
- Aadhar card & Voter Identity Card has to provided during the process.
- If company address on rent than rent agreement also be provided.
- Electricity bill or water bill also required on the name of business place.
- Landlord NOC Required (Format will be shared).
.
.
How Much i Need to Pay for Registering A Company?
===================================================
The Cost of Incorporation / Registration a Company would vary from INR 6999/- to INR 19999/- (GST Excluded) depending upon the plan you choose.
.
.
Accounts
Free Trial
Projects
SSL
Storage
Domains
Sub-domains
Basic
Rs 6999/-
* Inclusive all govt fee
2 Digital Signatures - Class 3 (2Years)
2 Director Identification Numbers
Name Approval
Incorporation Filling
MOA & AOA
PAN & TAN
Ledger Accounting Software
Standard
Rs 13999/-
* Inclusive all govt fee
2 Digital Signatures - Class 3 (2Years)
2 Director Identification Numbers
Name Approval
Incorporation Filling
MOA & AOA
PAN & TAN
Ledger Accounting Software
ESI & PF
GST Registration
Book-Keeping (Upto 75 Transaction)
Auditor Appointment
MGT-7 & AOC-4
Premium
Rs 19999/-
* Inclusive all govt fee
2 Digital Signatures - Class 3 (2Years)
2 Director Identification Numbers
Name Approval
Incorporation Filling
MOA & AOA
PAN & TAN
Ledger Accounting Software
ESI & PF
GST Registration
Book-Keeping (Upto 75 Transaction)
Auditor Appointment
MGT-7 & AOC-4
ITR - 6 Filling
1st Year GST Return Filling