Private Limited Company is most popular to start a new business in India. Nowadays, 90% of today young generation entrepreneurs also prefer private limited company registration due to its various advantages.
A Private Limited Company is a separate legal entity having perpetual succession. Most Importantly, Private Limited can be formed with minimum 2 directors and maximum fifteen directors. However, it can have minimum two and maximum two hundred shareholders/Members.
Now a Private limited Company can be registered with ZERO Capital. Therefore, Register a Company today to get tax benefits.
Requirements for Company Registration
For Company Registration, the below conditions have to be met.
A Private Limited Company must have at least two directors. The same two directors can also become shareholder of the company. However, maximum 200 people can become shareholders in the private limited company.
No Minimum Capital:
There is no minimum capital is required for Private Limited Company Registration. You can Start New Company Registration with One Thousand.
One Resident Director:
Among two directors, at least one director must be resident Indian for Private Limited Company Registration. Resident Indian means a person who have spent at least 182 days or more of a financial year in India.
The name of the private limited company should be unique and should not be similar to the any existing company name or trademark. Therefore, it is necessary to choose unique name to register a Company.
Documents For Company Registration
Identity Proof of Directors and Shareholders
Copy of Pan Card of Directors (Mandatory).
Passport Size of Photograph of Directors.
Identity Proof: any one of: Voter id card or Driving License or Passport.
Address Proof of Directors and Shareholders
Any one of: Bank Statement or Electricity Bill or Mobile Bill (not older than 2 months).
Proof of Registered office:
Conveyance/ Lease deed/Rent Agreement etc. along with rent receipts (any one).
Copy of the utility bills (Telephone/Gas/Electricity bill) (not older than two months) (any one).
NOC from Landlord.
Benefits of Private Limited Company Registration
Private Limited Company Registration is one of the highly recommended ways to start a business in India. Similarly, Businessman prefer Private Limited Company Registration due to its various advantages
Limited Liability of Shareholders:
Liability of members as shareholders are limited only up to shares held by them. They should not be liable for the debts of the company where company are unable to pay its liabilities. It means that if a company incur losses then its shareholders or members are not liable personally. Thus, members are not liable to sell their own assets to repay the liabilities of Company.
Separate Legal Entity:
A Company is an artificial person created by law. Company are separate than its shareholders/ promoters. Company is considered as legal person which has the power to enter into any contracts, possess properties in its name. It is also called as artificial person since it is existing on in the contemplation of law. Company may also file a suit as an indigent person.
A Company never dies except it is wound up as per law. Company is considered Separate legal person and its existence will not be affected by the death of shareholders, directors or transfer of shares to others. A Company life is determined by the terms of it Memorandum of Association. Membership of a Company may keep changing from time to time, but that shall not affect its continuity.
Capacity to Sue and to be Sued:
Company can take legal action against another and also other person can take legal action against company separate from directors, shareholders & promoters. the company may bring an action against anyone in its own name. A company’s right to sue arises when some loss is caused to the company, i.e. to the property or the personality of the company.