Private Limited Company Registration

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Overview of Private Limited Company

A Pvt. Ltd. Co. is essentially a limited liability entity which is governed by the MCA, Companies Act of 2013, and the Companies Incorporation Rules of 2014 for the registration purposes. Pvt. Ltd. Co. is the most popular legal structure for businesses. Key factors to consider the Pvt. Ltd. Co. mode, include limited liability protection to shareholders; ability to raise the equity funds; separate legal entity status; and the continuous existence. All these and much more make Pvt. Ltd. Co. the most recommended form of business for numerous small, medium, and even large sized businesses.

To register a private limited company, you simply need to register all the directors (a minimum of two and a maximum of 15) with the MCA; register the name of the new company; and submit the company incorporation documents, including MoA and AoA. Also, minimum of two shareholders are required to register a private limited company.

Quick Guiding Notes:

  • A natural person can be a director as well as a shareholder, while a corporate legal entity can only be a shareholder.
  • Foreign nationals, foreign corporate entities, or NRIs can become Directors and / or Shareholders of a Company with Foreign Direct Investment, which makes it the preferred choice of entity for foreign promoters.

    • Advantages of Private Limited Company Registration

  • Easy Fund Raising
  • Pvt. Ltd. Company registration process is stringent enough to make this structure credible among others which makes fundraising or borrowing from external sources easier. The organization itself provides a number of ways to raise funds in the form of private equity, ESOP, and more.
  • Separate Legal Entity
  • Once the Company registration in India is done, a legal entity is born in eyes of law. This separates itself from its owners and managers. The company can operate on its own name simply by opening a bank account to own assets and enter into contract with parties. This also provides right to sue third parties in case of any defaults.
  • Owners’ Limited Liability
  • The company’s obligation or debts of does not create a charge over the owner’s personal assets. Their liability stays limited only to the capital subscribed and unpaid by them. Management and Ownership Separation
  • The separate ownership and management help both – the company and the management to focus on their potential works. The shareholders assign responsibility to operate and run the company without losing control in the form of voting.

    • Documents required to register a Private Limited Company

  • PAN Card (PAN Card of shareholders and Directors.)
  • Foreign nationals must provide a valid passport.
  • Identity Proof (Aadhar card and Voter ID/ Passport/ Driving License of Shareholders and Directors.)
  • Director’s Address Proof (Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.)
  • Photograph (Latest Passport size photograph of Shareholders and Directors.)
  • Business Address Proof (Latest Electricity Bill/ Telephone Bill of the registered office address)
  • NOC from owner (No Objection Certificate to be obtained from the owner(s) of registered office)
  • Rent Agreement (Rent Agreement of the registered office should be provided if any)

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