Private Limited Company Registration

private limited company registration

Private limited companies are the ideal method to begin a business. It’s simpler than a private corporation. It is less complicated than a private company. owned by the representatives of a Private Limited company registration shall be limited. Trading in shares of a Private Limited Company is not permitted.

What are the benefits of registering a Private Limited Company Registration in India?

1. Risks to personal assets are limited. The shareholders who are shareholders in a limited corporation are liable only to the extent of their contributions. As a shareholder, you will be accountable for your company’s obligations in the amount of your contribution. The shareholders don’t have any personal responsibility and thus do not have to cover the company’s liability from personal assets.

2. Legal Entity – Legal Entity – PLC is a legal entity distinct from you. It means that the PLC is accountable for the administration of its liabilities and assets as well as its debtors and creditors. The company is not accountable for the loss of the business. Thus, creditors can’t pursue you in court to recover the funds.

3. Raising Capital – Although it is true that registering a PLC is subject to strict compliance requirements, it’s most often preferred by entrepreneurs because it allows them to raise capital via equity, expand their business, and while limiting their liabilities.

4. Trustworthiness Companies that are located in India have been registered at the Register of companies(ROC) under the Companies Act 2013. Anyone can verify the information of the company on the Ministry of Corporate Affairs (MCA) website. In addition, information about the directors is included when forming the company. Therefore, the PLC type of business structure can be trusted more.

5. Continue Existence – A firm has “perpetual succession,” i.e. it will continue to exist uninterruptedly until its legal dissolution. A business, which is an independent legal entity is not affected in the event of the passing or the cessation of any member but is still active regardless of changes in the membership.

Documents that Directors and Shareholders For Private Limited company Registration:

  • PAN Card
  • ID Identification proof for voters Passport/Driving license (Aadhar Card not acceptable)
  • Address Proof Latest Statement from the bank with transaction/Telephone Billor Mobile invoice (Last 2 months)
  • Passport Size Photograph
  • Specimen Signature
  • Passport-size images of shareholders and directors.
  • Director’s email-ids as well as shareholders.

Documents Required for Registered Office Address for Private Limited company:

  • An Affidavit of a Stamp Paper is to be presented by all subscribers in the Company to confirm their desire to join the stockholders of the Company
  • Address proof – Office address proof – Agreement or an Ownership Deed like Sale Deed
  • Copy of bills from utilities, such as water bill, electricity bill bill, or gas bill that are not longer than two months
  • Utility bills with copies that aren’t older than two months
  • Copy of approval in the event company name that is proposed by business includes the word(s) or expression(s) that require the approval of the central government.
  • If the name proposed is an infringement of a trademark registered or is the subject of an application that is pending approval under the Trade Marks Act, then it is necessary to include an official trademark registration document or copy of the trademark application
  • A NOC must be obtained for the owner in the event that it is located situated on an unleased or rented property.
  • If the Director or subscriber Director do not have an ID number, it is obligatory to attach identification proof and address proof for the subscribers list

What is the deadline to start registering for a Private Limited company?

The entire process, including the approval of DIN and Name as well as incorporation, takes about 10 days. But, nowadays, the process of registering a company has become an easy process since all the documents are uploaded on one application form using MCA. This is an important move towards e-Governance and for companies trying to expand their operations.

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