Legaljini

Private limited company

Private limited company

A Private Company is a body corporate formed under the provisions of the Companies Act having a distinct entity separate from that of its founders with perpetual succession. A company can either be private limited or public limited. In India, private limited companies are generally owned and managed by family members or a small group of persons. Such a company cannot raise money from the public at large. The directors and shareholders in a private company are often the same unlike a public limited company. It usually has the words 'Private Limited' at the end of its name. At Legaljini, we can help you to incorporate Private Limited Company.

 

Advantages of Private limited company

Perpetual Succession:

An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Private Limited companies are not affected by the status of their owner when it comes to their existence. Changes within the management does not bring any affect to the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law. Death or inability to continue of owner does not hinder the proceedings of the company.

No Minimum paid-up capital:

The Companies Amendment Act, 2015 has come up with an amendment that there is no minimum capital requirement for starting a private limited company. The Companies amendment Act, 2013 has removed the words “of one lakh rupees or such higher paid-up share capital”. So the private limited company can be started without any amount of minimum capital.

Limited Liability:

The greatest benefit of private limited companies is its limited liability. The liability of the company is different as from its members of a company. Liability for debts incurred by the company lies in the company itself and not on the members. If anything happen to the company, its members are personally affected.

Minimum requirement of members and directors:

Only two members and two directors are required to incorporate a private limited company. This gives many Entrepreneurs an opportunity to set up their own company.

Private limited company Process

A minimum of two designated partners are required to form a LLP.

01

Digital Signature Certificate

Obtain Digital Signature Certificate (DSC) for the proposed director/s.

02

DIN Number

Obtain Director Identification Number (DIN) for the proposed director/s.

03

Application

Select a suitable company name and forward the application to Ministry of Corporate Affairs (MCA) for availability of name.

04

Drafting

Draft its Memorandum of Association (MOA) and Articles of Association (AOA).

05

Documents

Sign and file various documents including MOA & AOA with the Registrar of Companies (ROC) electronically

06

Payment

Payment of requisite fees to Ministry of Corporate Affairs along with the stamp duty.

07

Certificate

Obtain Certificate of Incorporation.