Private Limited Company is the most common and popular type of corporate legal entity in India. It is a privately held entity in which the owner’s liability is limited to their shares.
The 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 a minimum of 2 and maximum of 200 shareholders and directors. Any person can be both either Director or shareholder. The Private Limited entity type does n’t allow trading shares to the general public.
A Private limited company can raise the funds from foreign nationals, NRI’s, foreign direct investor. It also issues equity shares, debentures with RBI permission. A private limited company’s disclosure requirements are lighter, but its shares may not be offered to the general public and therefore cannot be traded on a public stock exchange.
StartedIndia is becoming one of the reliable platforms for startups across the Country. As a part of One stop solution for startups, we provide the best services at the best price so that as a startup you don’t have to suffer.
5 Simple steps
|1||Arrange Basic Documents of Directors|
|2||StartedIndia will apply for Digital Signature (DSC) of Directors|
|3||StartedIndia will prepare MOA, AOA, and other Legal Documents|
|4||StartedIndia will File SPICe (INC-32) or Incorporation Docs with ROC|
|5||Get your Company Incorporation Certificate|
Basic Documents you need to arrange for starting a Private Limited Company
1. One Passport size photograph of All Directors
2. Self-Attested PAN card copy of All the Directors
3. Self- Attested Proof of Identity (e.g. Voter ID, Passport, Driving License, Aadhar Card) of any one of the Directors
4. Business address proof (e.g. Electricity Bill, Telephone Bill, Property, Gas Bill, Tax Bill)
5. Rent Agreement ( If Rented ) or Sell Deed
6. Company Name (1 to 6 Names )
7. Company Services or Product Name
Advantages & Benefits of a Private Limited Company
Limited Liability Protection
to the Directors
Better Image and Credibility
in the Market
Easy to raise funds and loans
from Investors and Banks
Favorite Business structure
Easy to attract Employees
Easy to Sell
We have answered some of your Questions
No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after incorporation of the company. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.
No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year companies have to file very basic returns with ROC office.
ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai & Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad and so on.
No. StartedIndia provides complete online Company Incorporation process. All legal documentation with ROC and visits are done by StartedIndia.
Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by ROC office (Ministry of Corporate Affairs)
It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a director of a company.
A digital signature is electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for incorporation of Company. Digital Signature cannot be used in physical documents.
MOA means Memorandum of Association and AOA means Articles of Association. These are the bylaws or rules based on which important matters like the main business of the company or meetings is decided. These are standard legal documents prepared by Company Secretaries during registration of the Company.
Yes, company office address can be changed anytime after incorporation.
Capital means investment made by shareholders into the company. Authorised capital is an amount up to which company can issue shares. This capital is mentioned during incorporation of the company based on which ROC registration fees and stamp duty is paid. Paid up capital is an actual investment which goes from shareholders into company bank account, against which share certificate is issue by the company.
No. After company is registered, it need to open a company bank account and then anytime within two months of incorporation, capital can be deposited into Company bank account.
This is not true, a Private limited company is one of the mode of doing business, which means it can be started from scratch. For that matter even after incorporating a private limited there is no obligation that the company must have sales or turnover.
There is no automatic applicability. Provident Fund (PF), Service Tax or VAT law applicability is same for all types of businesses like sole proprietorship, partnership firms and companies. These laws are applicable only after crossing certain threshold limits.
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