Essential private limited company registration

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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. 

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• 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.

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• 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.

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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.

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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.

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• 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.

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• 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.

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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.

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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.
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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.

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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.

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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.

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• 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.

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Essential documents required for registering a
private limited company
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• 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

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• 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).