Private Limited Company is considered the most prevalent and popular corporate business entity among small, medium and large Companies in India. Private limited company is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. Today, startup and young generation entrepreneurs prefer private companies over traditional proprietorship and partnership firms due to its many advantages.
A Private Limited Company is a company that offers limited liability, or legal protection for its shareholders but that places certain restrictions on its ownership. A Private Limited Company is a separate legal entity having perpetual succession, with liability of shareholders limited to the capital being invested by them.
Minimum two directors are required to start the private limited company in India. The same two directors can become shareholder of the company. However, maximum 200 people can become shareholders in the private limited company.
No minimum capital is required to start the private limited company. However, A Private Limited should have minimum authorized share capital and Paid up share capital of at least Rs. 1 lakh.
Among two directors, one director must be resident Indian. Resident Indian means a person who have spent 182 days or more of a financial year in India.
The name of the private limited company should be unique and should not be similar to the any existing company name or trademark.
Liability of shareholders of the private limited company are limited only up to the shares subscribed by them and should not be personally liable for the debts of the company in case company are unable to pay its liabilities.
Company legal entity are separate than its shareholders/promoters.
Company existence will go for ever and its existence will not be effected by the death of shareholders, directors or transfer of shares to others.
Company can take legal action against another and also other person can take legal action against company separate from directors, shareholders & promoters.
Private limited company can sale, purchase and own the property like individual.
Companies are more recognized in terms of financial assistance/borrowing from banks and financial institution rather organization which are not company form of organization.
Limited Liability Partnership
One Person Company
Service Providers, Professional Service Firms, Trading Business
Ideal for Medium and Large-Scale business and allows them to raise equity capital from Public.
Limited Liability Protection
Only if contribution more than Rs. 25 lakhs or turnover exceeds Rs. 40 Lakhs
Subject to turnover of the firm
Simplified Proforma for Registration of Company electronically (SPICe) is a fast track registration procedure initiated by Ministry of Corporate Affairs which enables a single form for company registration.
Through SPICe Form, we can register a Company in 10-12 Days.
There is no minimum Capital Contribution requirement for starting Private Limited Company.
Yes, In Private Limited Company a NRIs and Foreign National can become Directors. They need to get a DIN from Ministry of Corporate Affairs (MCA). At least one Director on the Board of Directors should be an Indian Resident.
No, new company registration is a fully online process. As all forms are filed electronically. You would need to send us scanned copies of all the required documents.
eZeefiling can register a Private Limited Company in 15 days. To ensure a speedy Company registration, kindly choose a unique name as the proposed Company name and also ensure that you have all the required documents prior to the starting of the registration process.
These rules contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
Yes, one can register the company at their home address. One requires to submit the utility bill copy of the same with noc.