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 are easy to start up with minimum 2 directors, and with less compliance with registrar compared to other companies. These kind 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.
- Better Creditworthiness.
- More capital can be raised as the maximum number of shareholders allowed is 200.
- 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.
Steps to Register
- Initial level discussion between the entrepreneurs and the Aanoor Global team.
- – Enlighten about BIRD-PVTQ [Basic Information Requirement Document] and its handiness.
- – Preparation of Basic Information Requirement Document by Aanoor Global.
- – Get the details filled and signed by clients.
- 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.
- Name availability and draft Object Clause.
- – Check for name availability through online given by clients in BIRD.
- – Prepare the draft Object Clause.
- – Get approval from client for company name and objective.
- Filing Form for name approval to the concern ROC [Registrar of Companies] where the client's registered office going to be situated.
- Getting Objective Confirmation and Preparing MOA and AOA.
- Incorporation of a company.
- – Once got name approval from corresponding ROC, filing all the incorporation documents to the ROC.
- – Uploading of all the e-forms and pay the registration fees.
- – Getting the Company Incorporation Certificate from the ROC.
- Obtaining Certificate of Commencement of Business from ROC
- 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].
- DIN [DIRECTOR IDENTIFICATION NUMBER] for all Directors.
- DSC [DIGITAL SIGNATURE CERTIFICATE] for all Directors.
- Require Documents Address & ID proof of all Directors,
- Mandatory – PAN Card
- ID Proof – Voters Identity Card / Driving License / Passport / Aadhar Card
- Address Proof – Bank Statement / Electricity Bill / Telephone Bill / Mobile Bill
- Address Proof of registered office – Address proof of proposed registered office address for registration of company.