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Online Private limited Company Registration - Cost, Process, Advantages, Documents

A private limited company is held by a small group of people or individuals with strictly limited regulations. And ltd. is represented as a limited company. A Pvt ltd company is described by the number of shareholders and owners' liability.

A guide of Private Limited Company

A private limited company is held by a small group of people or individuals with strictly limited regulations. And ltd. is represented as a limited company. A Pvt ltd company is described by the number of shareholders and owners' liability. A private limited company is also defined as one that does not transfer its shares to the public as other companies do. A pvt ltd company has limited liability. However, a pvt ltd company is held disparately with limited liabilities. Financial statements must be provided annually by private limited companies for each fiscal year. We have mentioned the integral key characteristic of a private limited company- The purposed director of a private company has limited liability. The liabilities of the company can not be supposed as theirs. A limited company can only limited number of shareholders. The owners of the Pvt ltd Companies are not permitted to sell their shares publicly. The number of owners in a private limited company can be up to fifty shareholders.

Types of Private limited Companies

There are different kinds of categories based on liability and capital. We have mentioned those types below- Based on Shares: The registration of the pvt ltd Company can be done with or without share capital. The capital is divided into shares. These divided shares are furnished to the shareholders. Unlike other public limited companies, shares of private limited companies can not be issued to the public. The type of company based on capital is furnished in the capital clause of the (MoA) memorandum of association of the company. Unlimited liability: This type of private limited company has unlimited liability for its members. It also represents that their personal assets/shares/stocks are at risk. It shows that individual members' personal assets can be used to pay the company’s liabilities and debts during a company's insolvency. Even though the existence of such a thing does not exist, it does not mean it cannot exist. Company Limited By Guarantee This type of pvt ltd company is limited by a guarantee and its capital is not divided in the form of shares and stocks regardless it was oriented to the members in a context of guaranteed nature. Limited by guarantee does not encircle shareholders like a limited by share company. Such types of companies were announced by the new Companies Act of 2013. In terms of the member numbers, a private limited company can be one personal company too. These types of corporations have just one member/shareholder as their promoter.

Documents Required for Company Registration

For the registration of company directors of a private limited company need to furnish the following documents as proof of identification- For Indian Residents: Furnishing a PAN card is compulsory For Foreign Residents: Furnishing a passport is compulsory Additionally, the directors of the pvt ltd company must furnish one of the below-mentioned documents that can be used as the address proof of the director. Indian Nationals: Election ID/Ration Card. Aadhar ID. Passport. Driver’s License. Foreign Nationals: Residence Card. Bank Statement. Drivers License. The proposed directors must furnish one of the below-mentioned documents in addition to the proof of residency, and this document must have been generated within the last two months: Indian Nationals: Bank Statement Electricity Bill Phone Bill Foreign Nationals: Bank Statement Electricity Bill Phone Bill If one of the shareholders of the pvt ltd company is residing in India or abroad, then it is necessary to furnish the following documents- Board resolution authorizing investment in the company. Incorporation Certificate of the Company. Address proof of the company.

Formation of Private Companies

To form a private limited company there should be a minimum of 2 and a maximum of 200 people by furnishing an application to that effect to the registrar of companies with a subscribed copy of their (MoA) memorandum of association and other relevant documents along with a payment of predefined fees. The copy of the (MoA) memorandum should consist of the name of the company (Including the words “Private Limited”), the registered office address, objectives, and purposes, along with the extent of liability of its purposed members. The presented (MOA) memorandum of association must also mention the information of subscribers to the Memorandum. Apart from this, the Companies Act has also prescribed certain other compliances, such as requirements relating to names of private companies, their articles of association, transferability of shares/stocks, details of members, etc.

Company Registration

The process of private limited company registration of your company is perplexing with the many compliances. But you will not be stuck in the complicated process as long as myitronline is here. Our experts can assist you with every single procedure of private limited company registration. The first step is to get a (DSC) Digital Signature Certificate. The second step is to apply for the (DIN) Direct Identification Number The third step is to get the application for the name availability The fourth step is to furnish (MOA) Memorandum of Association and (AOA) Articles of association to register a private limited company The fifth step is to apply for the (PAN) Permanent Account Number and Tax Deduction Account Number of the company The registrar of the company gives a certificate of incorporation with a Permanent Account Number and Tax Deduction Account Number.

Frequently asked questions

A private limited company is an LTD business that is held privately and is limited to 50 shareholders. The private limited company does not allow its shareholders to trade publicly and limits the owner's liabilities. There can be only a maximum of 200 members in a private limited company.

Following are the required documents such as- Identity proof for all the shareholders/directors such as a PAN card Passport sized photographs Copy of voter ID card NOC (if the business place is rented) Electricity or water bills of business

For the registration of a private limited company, an individual needs to invest at least Rs. 40,000 to 50,000. For the ROC compliance, It would take Rs.15,000.

DIN stands for the Director Identification Number (DIN). If a person wants to be a director in a company then he/she must apply for the (DIN) Director Identification Number which is issued by the Ministry of Corporate Affairs.

Yes. It is possible to get incorporated, but the company has to provide the residential address. Ministry of corporate affairs allows limited companies “they can use a residential address as a company’s registered address.

There are certain drawbacks to a private limited company such as It only allows 50 shareholders, the shares can not be traded publicly, it denies the transferability of shares and the process of compliance is quite exhausting.

To establish a private limited company, There should be 2 members and 2 directors needed. The maximum number of members has increased from 50 to 200 in a private limited company.

Forming a private limited company depends on the number of members and directors and the authorized capital. The value of the needed amount can vary on various factors mentioned above. The amount generally reaches the limit of Rs.6000 to 30,000 to establish a Pvt ltd company.

There were 2 members allowed in a private company earlier but now the number of members has been increased from 50 to 200.

There are no regulations on profit sharing in private limited companies. Sharing profit methodology only works in a partnership firm.

Krishna Gopal Varshney

Krishna Gopal Varshney co-founder & CEO of Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

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