Private limited company is the most popular corporate entity amongst small, medium and large businesses in India due to various advantages. Legalguidance offers company registration from Rs.21899/-
Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. 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.
Legalguidance is the market leader for services relating to company registration in India. Legalguidance can help you register a private limited company, one person company, nidhi company, section 8 company , producer company or Indian subsidiary. The average time taken to complete company formation is about 10 – 15 working days, subject to government processing time and client document submission. Get a free consultation for private limited company registration and business startup by scheduling an appointment with an Legalguidance Advisor.
Private Limited Company is a legal entity and a juristic person established under the Companies Act. Hence, a company has a range of legal capacities including opening of a bank account, hiring of employees, taking on equity or obtaining licenses and more as an independent corporate entity. The members (Shareholders/Directors) of a company have no personal liability to the creditors of a company for company’s debts.
Private Limited Companies can raise equity funds in India. Companies can also issue equity shares, preference shares, debentures and accept deposits with RBI permission. Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns.
Private Limited Company being an artificial person, can acquire, own, enjoy and alienate, property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company – as long as the company is a going concern.
Private Limited Company has ‘perpetual succession’, meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.
Ownership of a business can be easily transferred in a company by transferring shares. The signing, filing and transfer of share transfer form and share certificates is sufficient to transfer ownership of a company. In a private limited company, the consent of other shareholders maybe required to effect share transfers.
Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.
All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.
Starting a company is easy through Legalguidance. All that is required are PAN card of the promoters, address proof and bank statement copies of the promoters along with address proof for the registered office address. A company can be started in about 10 - 15 days. If you have the necessary documents, sign up for one of our packages and have a company registered with guidance from one of our Advisors.
Limited liability is the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a private limited company the liability of the shareholders in respect of the company’s liabilities is limited. In other words, the liability of the shareholders of a company is limited only to the value of shares taken up by them.
Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased after incorporation at anytime to issue additional shares to the shareholders.
To register a private limited company, a minimum of two people are required to act as directors and shareholders. The directors must be natural persons, while the shareholders can be natural persons or corporate entities. In addition, a registered office address in India is also required for company registration.
On average, private limited companies are registered by Legalguidance in 10 to 15 days. The processing time would vary on a case to case basis based on the time taken by our clients to submit the necessary documents and government processing time.
Yes, NRIs, foreign nationals and foreign entities can register a company and invest in India, subject to the Foreign Direct Investment norms set by the RBI. However, incorporation rules in India require for one Indian national to be a part of the company on the Board of Directors.
Any person over the age of 18 years can become a director in a company. Also, there are no conditions on residency or citizenship. Hence, NRIs and Foreign Nationals can easily start and manage a private limited company in India.
Yes, every company registered in India must have a registered office where all official communication is sent by the MCA, governmental agencies, financial institutions, etc., The registered office of a company can be in any state of India.
Company incorporation certificate is provided as a pdf document by the Ministry of Corporate Affairs (MCA). MCA does not provide hard or printed copy of incorporation certificate.
Private limited company registration with 3 DSC, 2 DIN, 1 RUN Name Approval, 1 lakh authorised capital, incorporation fee and stamp duty*, incorporation certificate, PAN, TAN and LEDGERS accounting software. Inclusive of all government fee and taxes.
Private limited company registration with 3 DSC, 2 DIN, 1 RUN Name Approval, 10 lakh authorised capital, incorporation fee and stamp duty*, incorporation certificate, PAN, TAN, incorporation kit, share certificates, GST registration and LEDGERS accounting software. Inclusive of all government fee and taxes.
Private limited company registration with 3 DSC, 2 DIN, 1 RUN Name Approval, 10 lakh authorised capital, incorporation fee and stamp duty*, incorporation certificate, PAN, TAN, incorporation kit, share certificates, GST registration, Udyog Aadhaar, Trademark Registration and LEDGERS accounting software. Inclusive of all government fee and taxes.