Private Limited Company
Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. A private limited company should have minimum of two shareholders and two directors. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.
Why you should choose private limited company?
- Perpetual Succession allows to add or remove shareholder without any impact on business of company.
- Limited Liability Protection provides immunity to owners personal property in case of any damages, losses or bankruptcy.
- Investor prefers to invest in private limited company.
- Foreign Direct Investment allowed to private limited company.
- Shareholders and directors are usually same for private limited company, this allows control over management of company.
List of documents required for Company registration
- PAN Card promoters
- Passport size photograph of promoters
- Aadhaar Card of promoters
- Rent agreement, if rented or
- Property Paper, if owned
- Electricity/ Water bill (registered place of business)
- Landlord NOC (No Objection Certificate)
Checklist for registration of private limited company in India?
- Two director must be required which can be maximum up to fifteen. At least one director must be resident of India.
- Registered place of business
- There is no requirement of minimum capital but private limited company should have at least 1 lakh authorised capital.
Step by step guide on registration of private limited company
- Acquire Digital Signature Certificate of Director
- Apply Director Identification Number
- Reserve Unique Name Form
- Apply for company incorporation
- Issuance of Certificate of Incorporation by ROC
How much time required to get company register?
Normally EAdvisors team required 10-15 day to get company registration but processing time may vary on case to case basis depending upon availability of documents and processing of file at ROC.