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Essential private limited company registration

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Here we have discussed about the features of private limited company registration, starting a new business is easier. But registering your business under right sector is an important task – PowerPoint PPT presentation

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Title: Essential private limited company registration


1
ESSENTIAL PRIVATE LIMITED COMPANY REGISTRATION
  • Here we have discussed about the features
    of private limited company registration, starting
    a new business is easier. But registering your
    business under right sector is an important task. 

2
  • An essential of registering company is the most
    popular type of legal entity in India. Private
    limited company registration are registered under
    the Companies Act, 2013 and the Companies
    Incorporation Rules, 2014. The company formation
    can be done with minimum of two members and a
    maximum of fifty members.

3
  • The directors of company can have limited
    liability to creditors. In a case of any problem,
    the creditors can only sell company assets, not
    the personal assets of directors. Starting a
    company in India is not the matter it should be
    registered once it is formed.

4
Importance of company registration
  • Chiefly, it is very important to register your
    company as a registered company have multiple
    advantages from easy to register too easy to
    dissolve. Meanwhile, the private limited company
    is recommended for start-ups and growing
    companies, as it allows outside funding to be
    raised easily. Moreover, Company Formation only
    is not enough you should follow 30 Days
    Compliance after Incorporation.

5
Essential requirements of private limited company
registration
  • Absolutely, the private limited company restricts
    the public to buy the company shares whereas in
    case of a public limited company it allows the
    public to buy the company shares. The name of the
    company should be unique and it should not be
    equal to any other registered trademarks. It is
    important for a private limited company to have a
    minimum two directors.

6
  • As well as, it is compulsory that it should have
    minimum two shareholders. All the members of
    company should have digital signature which will
    be used to register the private limited company.
    In essence, the private limited company formation
    can be done with an initial capital of
    1lakh.In limited liability Partnership Company
    there is no minimum capital requirement. An LLP
    can be formed with least initial capital.

7
  • Moreover, the contribution of a partner can
    consist of tangible, movable or immovable or
    intangible property or other benefit to the LLP.
    Further, the process of registering a Private
    Limited Company is simple make sure that it
    should be a unique name, which will surely help
    you for quick registration. You should also avoid
    any offensive name for your Company.

8
Essential features of private limited company
registration
  • Meanwhile, the main advantage of setting up a
    private limited company is that if a company goes
    into the loss, the shareholders are liable to
    sell the shares to recover the loss. In case of
    any failures, the shareholders personal assets
    will be not in the risk which is the main reason
    why most of the businesses choose a private
    limited company. For instance, the one person
    company (opcs) also cannot convert into other
    kinds of companies until the expiry of two years
    from the date of their incorporation.

9
Subsequently, the private limited company does
not hold any relation with the public people.
They are not allowed to ask any sort of deposit
from the public sectors. Moreover, they are not
allowed to transfer shares which can help them to
prevent the takeovers of small Private Limited
firms from big Public companies.
10
Benefits of private limited company
  • In sole proprietorship company, there is no legal
    distinction between the owner and the business so
    there is no need for the board of director or
    shareholders. The owner is not answerable to
    anyone. Meanwhile, Private Limited Company has no
    ending existence mean they have no effect if
    partners changed or died or any such circumstance
    took place. Private Limited Company has to pay
    corporate tax.
  • Moreover, establishing a business as private
    limited company has its own set of advantage
    compared to other methods of company registration
    like firm registration, Limited Liability
    Partnership (LLP) registration, Public Limited
    Registration or Nidhi Company Registration, as
    going with private company registration provides
    you with out of the box funding compatibility.

11
Essential privileges of private companies
  • Beyond, the Companies Act has provided certain
    privileges to private companies which public
    companies do not possess. These privileges allow
    them greater freedom in conducting their affairs.
    Here are some examples of them
  • No need to prepare a report for annual general
    meetings.
  • Only 2 minimum directors required.
  • No need to appoint independent directors.
  • A private companies are not required to prepare
    and maintain any index to the Register of
    members.
  • They can pay greater pay to their directors than
    compared to some other types of companies.

12
Essential types of Private Companies
  • First of all, private companies are classified
    into three types based on the member liabilities
  • Limited by shares
  • Although, liability of the members are limited to
    the amount unpaid to the company with respect to
    the shares held by them.
  • Limited by guarantee
  • The members liabilities are limited to the
    amount of money they guarantee to pay in case the
    company is wound-up.

13
  • Unlimited liability
  • Liability of members is unlimited in this type of
    private companies. Personal assets of members can
    be attached and sell when the company is in
    tension.
  • In terms of the number of members, a private
    company can also be a One Person Company. These
    types of companies have just one
    member/shareholder as their promoter. Further,
    even small companies that have limited paid-up
    share capitals and turnover amounts, as defined
    under Section 2(85), are treated as private
    companies under Indian company law.

14
Essential documents required for registering a
private limited company
15
  • From proposed Directors/ Members
  • In case of an Indian national Director or Member
    (Self-attested)
  • ID proof -Passport/ Driving License/ Voter ID
    card/ AADHAAR Card
  • PAN card of the applicant
  • Copy of bank statement
  • Email ID and mobile number

16
  • In case the applicant is a foreign national
    (Self-attested)
  • Passport (Apostille and Notarized)
  • Residential proof (Apostille and Notarized)
  • Email ID and mobile number
  • Attested copy of VISA (If the applicant is out of
    the native country).
  • Attested copy of Resident Permit certificate (If
    the applicant is in India)
  • For Registered office
  • Rental agreement on the name of the company.
  • Utility bills such as telephone, electricity, and
    municipal (Not older than 90 days).
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