Private Limited Company
In India, the most common entity type is a private limited company. Members of a private limited company have limited and legally protected liability up to the number of shares they own. It works well for small, scalable businesses and startups.
Overview
Ninety-five percent of Indian businesses are private limited companies, according to research. A Private Limited Company is a legal entity that can operate independently and can file and receive lawsuits in its own name. There is a clear distinguish between the managers (Directors) and the owners (Shareholders) of the company. In India, the majority of international businesses establish their subsidiaries as private limited companies.
Because of its regularized compliances, it is the most reputable kind of entity and is recognized by Indian law. It is quite easy to receive equity funding in the private limited company.
Benefits of Private Limited Company
Ownership The directors (management) and owners (shareholders) of a private limited business are clearly defined. This facilitates the offering of equity shares to new investors.
Investment from overseas:
Compared to other kinds of entities, accepting foreign direct investment (FDI) is very simple. Because FDI is permitted through the automatic route for Private Limited Companies in the majority of sectors. which other entities do not have.
Transfer of Shares:
Comparing private limited companies to other corporations, the procedure of transferring ownership from one shareholder to another is relatively simple and quick.
Raising Money:
Compared to other entities, private limited companies have an easier time raising money from banks, venture capital, and equity funds.
The quantity of shareholders and directors:
Public limited corporations must have at least seven directors, while private limited companies just need two shareholders and directors.
ESOP:
Through the Employee Stock Option Plan (ESOP), which is provided by private limited companies, a business can give shares to its devoted staff members over time at a set subscription fee.
Compliance Private limited:
companies have higher compliance rates than other firms, but this makes it easier to identify them. In India, the most well-known kind of entity is a private limited company.
Checklist/Requirements
Basic Requirement:
• A minimum of two stockholders and a maximum of 200
• A minimum of two directors and a maximum of fifteen
• A minimum of one director must reside in India.
• Shareholders and directors may be the same individual.
• An address that serves as the business’s registration address
Documents requirement:
For Every Shareholder and Director
1. PAN card* (if owned, required for Indians and others)
2. Passport* (for foreign nationals, Indians, and NRIs if held)
3. Provide proof of address (any one of) that is no older than two months. A bank statement a. Bill for the phone d. Bill for Mobile d. The bill for electricity
(Note: Documents signed outside of India or issued by foreign agencies must be notarized and apostilled for non-resident Indians and foreign nationals.)
For Registered Address:
1. NOC from Owner*
2. Rent Agreement*
3. Utility Bill*
How to Register Private Limited Company?
The process of incorporating a private limited company begins as follows after the company’s founders decide on a name for the business. (Note: The company name and brand name do not have to match.)
Step 1: Apply for a Director’s Identification Number (DIN) and Digital Signature Certificate (DSC).
Step 2: Submit a name reservation application
Step 3: To register the private limited company, draft and file the MOA and AOA.
Step 4: Apply for the company’s PAN and TAN.
Step 5: Issue the company’s PAN and TAN in addition to the Certificate of Incorporation
Key Deliverables
a. Directors’ and shareholders’ DSC
b. The TAN number and PAN
c. The incorporation certificate
d. The company’s MOA and AOA
Why Choose Us
Friendly to Entrepreneurs
Our pros will offer you all of the promised deliverables within the allotted period, and we make the procedure so quick and simple that you won’t even feel the headache of all the paperwork.
Skilled Experts
Every one of our experts is trained and skilled in that specific field. ensuring that no errors are made when filing with the authorities in order to prevent the company from incurring penalties for errors.
One Place to Go for All of Your Needs
We assist you at every stage of your company’s development, including incorporation, accounting and taxation, secretarial compliance, and legal support.
Economical
Since cost is a major factor in any business’s growth stage, we don’t surprise our clients with extra fees; instead, you pay what is shown in the original plan.
