A Private Limited Company is a privately run business that is one of the most popular ways to start a business in India. Private limited company registration in India is governed by the Companies Act 2013.
As per Section 2(68) of the Act of 2013, a private company is one that has a minimum paid-up capital and an article that restricts the right to transfer its shares, except in the case of a One Person Company. Reach Today!
According to the 2013 Act, a private company must have a minimum of two members and a maximum of 200 members. If a private limited company faces financial difficulties, its shareholders are not required to sell their personal assets, implying that they should have limited liability.
A private limited company exists indefinitely. A private limited company continues to exist even if its members die or go bankrupt.
Business Structure | Suitable For | Characteristics | Regulatory Compliance |
One Person Company (OPC) | Single individuals | Allows a single member with limited liability | Governed by the Companies Act, 2013 |
Limited Liability Partnership (LLP) | Close groups of people | Combines features of partnerships and corporations, providing limited liability to partners | Governed by the Limited Liability Partnership Act, of 2008 |
Private Limited Company | Groups planning to raise funds | Offers limited liability to members, allows private placement of shares | Governed by the Companies Act, 2013 |
Public Limited Company | Those planning to offer shares to the public | Offers shares to the general public, subject to strict regulatory compliance | Stringently regulated under the Companies Act, 2013, and SEBI Act, 1992. Must comply with listing requirements if listed on stock exchanges |
At Prakasha & Co. we are fully capable of meeting your specific business requirements. Our experts have extensive experience in offering the best company registration consultancy in Bangalore. We give our full attention and strive to offer comprehensive services to our clients. You can easily trust our Company Registration Consultants for a smooth and quick registration process.
A foreign national can also become a director of an Indian private limited company. There is no minimum paid-up capital required for the formation of a private limited company. Every private limited company must end their name with “Pvt.Ltd.”
The private limited company has no relationship with the public; they are not permitted to request collateral from the public or public sectors. Individuals are not obligated to transfer shares in a private limited company, which protects private limited company takeovers from large corporations.Get your Private Limited company Registration in Bangalore today by Applying here
Recently, the Government of India has simplified the process of registering a Private Limited Company online. There must be a minimum of two directors and shareholders. A single individual may serve as both a director and a shareholder. However, a corporation can only become a shareholder.
Directors, shareholders, and witnesses of the Memorandum and Articles of Association are required to possess a valid Digital Signature Certificate (DSC). The registration procedure is conducted online, and the forms must be electronically signed with a digital signature. Digital Signature Certificates (DSC) may only be obtained from certifying agencies recognised by the government.
Director Identification Number (DIN) is a unique Identification Number assigned to a person who is appointed (or seeks appointment) as a Director of a corporation. Form DIR-3 must be submitted through the MCA website in order to apply for a DIN (Ministry Of Corporate Affairs).
A person can only apply for a DIN once, but the same DIN is sufficient to become a Director in any number of companies.
In order to register or incorporate a Private Limited Company in India, the MCA Authorities must approve the proposed company’s name. Therefore, it is obligatory to apply for the Name Reservation prior to the incorporation application.
The proposed Company Name must be distinctive and unavailable to any other business. The name’s availability can be checked at http://www.mca.gov.in/mcafoportal/
Additionally, the proposed company name must not be Trademarked by another party. Check the availability of a trademark at https://ipindaonline.gov.in/.
Once the name has been reserved and approved, it will only be valid for twenty days. The MCA must receive a request for a Certificate of Incorporation using SPICe forms within the applicable time frame.
Creating Articles of Association (MoA)
The Memorandum of Association is a legal document that outlines the primary goals of a limited liability company. It must also include information regarding the promoters’ shareholding structure, etc.
Developing Articles of Incorporation (AoA)
The Articles of Association is a legal document containing the rules and regulations for the general management of a limited liability company. In addition to defining the rights, responsibilities, and powers of a company’s management, they also stipulate how operations and administration should be conducted.
SPICe Type (Simplified Proforma for Incorporating Company Electronically)
The Ministry of Corporate Affairs (MCA) has recently introduced the “Simplified Proforma for Incorporating Company Electronically” SPICe Form INC-32 (company registration form). Form INC-32 must be accompanied by supporting documents, such as Details of Directors & Subscribers, Affidavits, Declarations, Proof of Identity, Proof of Address, Memorandum of Association, and Articles of Association, etc.
The eForm will be processed by the MCA’s Central Processing Centre once it has been submitted. If found complete, the company would be registered and a Corporate Identification Number (CIN) and Certificate of Incorporation would be issued.
Expert guidance at Prakasha & Co. , you’ll feel a breeze in Registering your Private Limited company in Bangalore. Get Started Today
Choosing the right business structure for your company is important. You can choose between the different types of structures such as Sole Proprietorship, Partnership, Limited Liability Partnership, Public Limited Company and LLP. Each of these has its own compliances and tax implications. You should always reach a good Company Consultant or Company Secretary to guide the right platform.