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About pvt ltd company

Private Limited as it name refers to a type of business run by a intimate or close group of individuals. This type of business has distinct legal identity in legal terms. in layman terms it is an artificial person. The individuals who invest funds in this type of business are referred to as Shareholders, and those who oversee the day-to-day operations are referred to as Directors of the business. This type of business is the most well-known kind for business operations in India.

 

how to start a private limited company in india

 

Private Limited Company

A Private Limited is a Business Entity that is distinct from directors and Shareholders with a continuous succession, and a limited financial obligations. It must have a minimum of two directors and two Shareholders. The word "Private" means that the public can't be invited to purchase its shares, while 'Limited' indicates that the liability of directors and shareholders is limited. This kind of business entity limits the owner's responsibility to shareholdings, the number of shareholders is limited to 200 and prohibits shareholders from trading shares publicly. This is the most widespread and most popular form of legal entity for corporates in India.

1. How many Directors are needed in a Private Limited Company?

  • Minimum no. of directors required is 2 of which 1 must be an Indian Resident.

  • Anyone can be a director in the company including relatives

  • Director Identification Number. (DIN) as well as Digital Signature Certificate (DSC) are required to be directors of the company.

  • Directors are the management team and they are accountable for daily operations of the business.

2. Who are the Shareholders of the company?

  • Minimum number of shareholders required are 2

  • Directors and Shareholders may be the same

  • Shareholders are the shareholders of the company.

3. What are the different types of Share Capital?

  • There are two types of capital i.e. Authorize Capital (It is the amount of capital that the company is authorized to solicit contributions from members and can be increased at any time. ), Paid Up Capital (It is the amount of capital that is paid out by members of the business and it is able to be increased whenever needed.)

  • There is no need for minimum capital. Hence, the company could be established by putting in capital as low as INR 1

4. What's the Registered Office of the Private Limited Company?

  • Any space can be designated to be the registered office for the business, even the residence space can be made the corporate registered office.

5. Who's who is the Registering Authority of the Private Limited Company?

  • Ministry of Corporate Affairs.

6. What documents are needed to the creation of a Private Limited Company?

> Proof of Registered office address (Conveyance/ Lease deed/Rent Agreement/Maintenance Bill)

> Copy of utility bills for the office registered (Electricity Bill/Telephone Bill that is not longer than two months)

Directors/Shareholders

> PAN Mandatory Indian National / Passport - Foreign National

> Identity Proof - Passport/Voter ID/Driving License/Voter ID

> Evidence of address (Electricity Bill/Bank Statement/Telephone Bill not more by 2 months)

"All forms are for Indian National to be authenticated by self

All documents issued by a Foreign National must be self-apostilled and self-attested