Private Limited Company is the most prevalent and popular type of corporate legal entity in India. To register a private limited company, a minimum of two shareholders and two directors are required and maximum of two hundred members. 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.
(Anyone can register a Private Limited Company with Minimum Paid Up Capital for Private Limited is Rs. 100000. Governing body is Ministry Of Corporate Affairs.)

liability

A liability is a company's financial debt or obligations that arise during the course of its business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services.

Fund Raising

Fundraising is much more than asking people for money. The true purpose of fundraising is not to raise money, but to raise donors. The only way you can raise money year after year is by developing a broad base of loyal individual donors who are committed to your work.

Credibility

Credibility engenders belief in your company and all its communications. The temptation to stretch your promises is overwhelming when you are trying to raise capital or secure a partner, especially in today's economy, which has put everyone into survival mode.

Easy To Close

A private limited company Winding up a private limited company is a tedious, but necessary, procedure. Without doing so, you would need to annually meet the requirements.

The liability of its members is limited, to the extent of unpaid money towards the subscribed capital of the company.

It has an independent legal existence. The Indian Companies Act, 2013 contains the provisions regarding the legal formalities for setting up of a private limited company. Registrars of Companies (ROC) appointed under the Companies Act covering the various States and Union Territories are vested with the primary duty of registering companies floated in the respective states and the Union Territories.
It is relatively less cumbersome to organize and operate, as it has been exempted from many regulations and restrictions to which a public limited company is subjected to.

The shares allotted to it’s members are also not freely transferable between them. These companies are not allowed to invite public to subscribe to its shares and debentures.
It enjoys continuity of existence i.e. it continues to exist even if all its members die or desert it.
Hence, a private company is preferred by those who wish to take the advantage of limited liability but at the same time desire to keep control over the business within a limited circle and maintain the privacy of their business.

Benefits

Separate Legal Entity: The members (Shareholders/Directors) of a company have no personal liability to the creditors of a company for company's debts.
perpetual succession: business continues to exist even when shareholders change
Borrowing Capacity: Easier to raise finance
limited liability: limited to the extent of amount to be paid on shares.

Documents Required For Company Registration

Identity proof of Director and Shareholder

Copy of PAN Card of directors of Indian nationals
Notarised passport copy for Foreign Nationals

Address proof of Director and Shareholder

Bank Statement
Driving License
Pan card
Aadhar card
Passport
Electricity bill not older than 2 months

Proof for Registerd Office in INDIA

Copy of Property papers(If owned property)
Copy of Rent agreement (If rented property)
Electricity/ Water bill not older than 2 months
Landlord NOC

Passport size photo of Director

Procedure for Incorporation of Private Limited

Application of DSC & DIN

First of all, the partners have to apply for Digital signature and DIN. Digital signature is an online signature used for filing and DIN refer to Directors Identification Number issued by MCA. If the directors already have DSC and DIN, then this step can be skipped.

Name Approval

You need to provide your company name to MCA in Form RUN. Names provided should ideally be unique and suggestive of company business. Name is available for 20 days.

MOA & AOA submission

Once name is approved, one needs to draft Memorandum of association and Articles of Associate. Both MOA and AOA are filed in Form SPICe with the MCA with the subscription statement within 20 days from the date of reciving of approval letter from MCA.

Get incorporation certificate

It typically takes 15- 25 days to form a Private limited company and get the incorporation certificate. Incorporation certification is a proof that company has been created. It also includes your CIN number.

Apply for PAN, TAN and Bank account

Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days.

Meet our

Private Limited Company