Private Limited Company

Private Limited Company

What is Private limited company?

In India, the most common type of "legal structure" is a private limited company. A Private Limited Company Registration in India is governed by the Ministry of Corporate Affairs and is incorporated under the Companies Act of 2013. It is legally distinct from its owners. It is widely used because it provides numerous benefits to its directors, such as limited liability, which means that if the company defaults, bank/creditors can only sell the company's assets and not the directors' personal assets. Starting a business in India is a pipe dream unless you have a proper business entity to back it up.

Everyone, from veterans to novices, from budding start-ups to established entrepreneurs, and from north to south India, regard it as the best business entity. You can use our services to register your Private Limited Company. We have served clients from major cities throughout India for Private Limited Company Registration.

Documents Required For Company Registration

• Self-attested PAN card from each prospective partner is required for the Private Limited Company Registration Process.
• Self-attested passports, election cards or voter identification, Aadhaar cards, or any other form of identity verification acceptable for Indian citizens and required for Private Limited Company Registration Documentation.
• The most recent electricity or telephone or gas or mobile or other utility bills from the company's location that are less than two months old can be used as proof of the registered office address.
• Also included are the most recent two passport-size photos.
• All directors and members must submit two months' worth of bank statements.

Advantages of a Private Limited Company

No Minimum Capital:

There is no minimum capital requirement to form a Private Limited Company, and it can be registered with as little as Rs. 10,000 in total Authorized Share capital.

Separate Legal Entity:

A Private Limited Company is a separate legal identity in the eyes of the law, which means that the assets and liabilities of the business are distinct from the assets and liabilities of the Directors. A juristic person is someone who isn't a natural or human being. Members of a company are not liable to the company's creditors for such debts. A Private Limited Company separates management and ownership, so managers are accountable for the company's success as well as its failure.

Tax Efficient:

Because they can claim corporation tax relief on their profits, private limited companies are tax efficient. This can result in significant savings for businesses and increased profits, as well as capital allowances and R&D tax credits. Dividends paid by private limited companies to their shareholders are taxed at a lower rate.

Uninterrupted existence:

A company, as a separate legal person, is unaffected by the death or other departure of any member and continues to exist regardless of membership changes.

Limited Liability:

The status of being legally responsible only for a limited amount of a company's debts. As a result, where a company is limited by shares, the members' liability on a winding-up is limited to the amount unpaid on their shares. For example, if a Private Limited Company takes a loan and is unable to repay it, the members are only obligated to pay the amount they own towards their own shareholding, i.e. the unpaid share value. This means that if you have no balance payable on the number of shares you own, you are not liable to the company for any debt or credit amount that remains unpaid.

Fund Raising:

In India, the only type of business that can raise funds from Venture Capitalists or Angel Investors is a Private Limited Company.

Transferability of shares is free and simple:

A shareholder's shares in a company limited by shares are transferable to any other person. When compared to the transfer of an interest in a business run as a sole proprietorship or partnership, the transfer is simple. Transferring shares is as simple as filling out and signing a share transfer form and handing over the buyer's shares along with the share certificate.

Easier to Manage:

Due to the flexibility to set up an unlimited number of bank accounts, income and expense items, and other features, many online accounting software suppliers have integrated into their systems as private limited companies have risen in popularity. These include submitting annual returns and reports to Companies House, holding shareholder meetings, and maintaining accurate company records.

Owning Property:

As a legal person, a corporation can acquire, own, enjoy, and alienate property in its own name. As long as the company is in business, no shareholder can make a claim on its assets.

Suiting and being sued:

Suing means to initiate legal proceedings against someone or to file a lawsuit in a court of law. Just as one person can sue in his or her own name against another in that person's name, a company, as an independent legal entity, can sue and be sued in its own name.

Dual Partnership:

A company can enter into a valid and binding contract with any of its members under the company form of organization. It is also possible for a person to be in charge of a company while also working for it. An individual can thus hold multiple positions within the organization at once, including shareholder, director, employee, and any other position.

Borrowing Capacity:

A company has more options for borrowing funds. It can issue both secured and unsecured debentures and accept public deposits, among other things. Even banks and financial institutions prefer to lend large sums of money to corporations rather than partnership firms or proprietary concerns.

Foreign Direct Investment (FDI):

It is permitted in a Private Limited Company, which means that any foreign entity or foreign person can invest directly in a Private Limited Company.

Builds Credibility:

The company's specifics are available on a public database, which increases the company's credibility by making it simple to authenticate the details.

Registration Criteria for Private Limited Companies

• For a private limited company, there must be at least two shareholders and two directors.
• A private limited company must have two directors, at least one of whom must be an Indian citizen.
• In India, there is no minimum capital requirement for forming a private limited company.
• Your company's name is crucial because it creates the first impression in the minds of your buyers, suppliers, and stakeholders. So the factors to consider when choosing a name are that it should be short yet simple, meaningful, not illegal or offensive, unique, and end with the suffix "Private Ltd.

What is included in TaxAbide

Private Limited Company Registration package?

• Certificate of Incorporation
• Digital Signature for Two Directors
• DIN for Two Directors
• Name Search Approval
• Main Object Drafting
• Drafting of MOA & AOA
• Filing of SPICE+ Form
• ROC Fee & Stamp Duty Included
• E-Pan Card of Company
• TAN or TDS Number
• EPFO Registration
• ESIC Registration
• Bank A/c Opening Support
• GST Registration