Private Limited Company

Private Limited Company is a legal business entity registered with the Ministry of Corporate Affairs under companies act. As it has many advantages and easy to operate, it is one of the most popular business structures in India. The owner and directors of the company have limited liability and they are not personally liable to any debt and losses owned by the company. Any business activity can start under the private limited company format, but it should be a legal activity.

Features of a Private Limited Company

Members: Minimum of 2 members are required to form a Private Limited Company. The maximum number of members of a Private Limited Company should be more than 200 as per the provisions of the Companies Act, 2013.

Limited Liability: The members of a Private Limited Company have a limited liability. Thus, in case of loss arises in Company for any circumstances, the assets of the Company will be used for making payment. The personal, individual assets of the shareholders are not at risk.

Perpetual succession: As a Company is a separate legal entity, its succession does not depend on even in the case of death, insolvency, the bankruptcy of any of its members. This leads to the perpetual succession of the company. The life of the company keeps on existing forever.

Index of members: A private company does not have to keep an index of its members whereas the public company is required to maintain an index of its members. Thus, it has a privilege over the public company.

Paid-up capital: A minimum paid-up capital of Rs 1 lakh or such higher amount which may be prescribed from time to time is required to form a Private Company.

Prospectus: Before inviting to invest in the Company, a Pubic Company has to publish the Prospectus containing detailed statement of the company affairs. However, in the case of a private limited company, this is not required as there is no involvement of public money.

Minimum subscription: No minimum subscription is required for a Private Company. Shares can be allotted without receiving the minimum subscription.

Name: For all the private companies, Name is a must to use the word "Private Limited" after its name.

Requirements for Registration of a Private Limited Company
 

• Name of the Members: Shareholders name, address


• Aadhar Card (of all proposed Directors)


• PAN Card (of all proposed Directors)


• PAN Card of the Company


• Photograph (of all proposed Directors)


• DSC (Class 3) (of all proposed Directors)


• DIN (of all proposed Directors)


• Proposed four Names of Company to be registered (on Priority Basis)







 
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