Private Limited Company For Non Resident Indians
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.
Checklist for Company Registration
As per the Ministry of Corporate Affairs (MCA), if anyone wants to register Company in India, the below conditions have to be met.
Two Directors:
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:
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.
One Resident Director:
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.
Unique Name:
The name of the private limited company should be unique and should not be similar to the any existing company name or trademark.
Documents For Company Registration
Identity Proof of Directors and Shareholders
- Copy of Pan Card of Directors (Mandatory)
- Passport Size of Photograph of Directors
- Identity Proof: any one of: Voter id card, Driving License, Passport
Address Proof of Directors and Shareholders
- Any one of: Bank Statement, Electricity Bill, Mobile Bill (not older than 2 months)
Proof of Registered office:
- Conveyance/ Lease deed/Rent Agreement etc. along with rent receipts (any one)
- Copy of the utility bills (Telephone/Gas/Electricity bill) (not older than two months) (any one)
- NOC from Landlord
- Note: All the Documents in case of Foreign Director should be additionally complied as follows:
- Notarized (if residing in commonwealth countries)
- Notarized & Apostiled (if residing in country which is signatory to Hague convention)
- Notarized & Consularised (If not covered in above categories)
Benefits of Private Limited Company
Limited Liability of shareholder:
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.
Separate Legal Entity:
Company legal entity are separate than its shareholders/promoters.
Perpetual Existence:
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.
Capacity to Sue and to be Sued:
Company can take legal action against another and also other person can take legal action against company separate from directors, shareholders & promoters.
Ownership of property:
Private limited company can sale, purchase and own the property like individual.
Borrowing Recognition:
Companies are more recognized in terms of financial assistance/borrowing from banks and financial institution rather organization which are not company form of organization.