Overview:

Private Limited Company

A company is a voluntary association of individuals formed to carry on business to earn profits or for nonprofit purposes and it is registered under the Companies Act 2013. These persons contribute towards the capital by buying its shares in which it is divided. A company is an association of individuals incorporated as a company possessing a common capital i.e. share capital contributed by the members comprising it to employ it in some business to earn profit.

TaxSavvy, which Consists of your trusted legal advisor in your nearest place, provides a cost-effective company registration service in India. You may learn how to register your business here. We take care of all legal formalities and fulfill the compliances, as defined by the Ministry of Corporate Affairs. Post-approval of the company registration process, you receive a Certificate of Incorporation (CoI), along with PAN and TAN. Now, you can open a current bank account and begin your business operations.

Amazing Benefits Associated with a Private Limited Company

Private Limited Company

What concept strikes your mind whenever you come across the words “private limited company”? Yes, it is none other than a firm where you need to prove yourself and will be paid accordingly. But, there are some more important points that you must not refrain from considering, especially when operating in India. Want to know about them in detail? Here they are…..

Liability of any Private Limited Company

Private limited companies refer to businesses whose shares cannot be traded publically. Regardless of the size, their liabilities are limited to the total shares held by the members associated. Being one of the most popular forms of business registration in India, registration for the same can be easily performed with a minimum of two people.

The following characteristics help in making these companies among the most recommended business entities:

  • Liability protection for the shareholders
  • Ability in terms of raising equity funds
  • The separate legal entity status

It applies to all private companies that are either professionally managed or family businesses.

What are Some Minimum Criteria to Fulfill?

There are certain criteria that every private limited company must fulfill. Without fulfilling them, there may be chances that the overall establishment of the business may get disrupted. Also, carrying on with the overall management of the firm may become difficult. Those minimum criteria include the following:

  • Minimum two adult persons as directors
  • One of them has to be a permanent citizen of India
  • The other may belong to any offshore country
  • It is essential to have two shareholders. The shareholders may be either natural people or artificial entities recognized legally

Once the above-mentioned criteria are fulfilled, it will become easy to move ahead with the registration process.

Peep into the Registration Process

Are you looking forward to registering your company as a private limited company? If yes, then it is high time to consider the fact that the procedure is a bit complicated. Still, getting help from experts will help in making every step seem much easier. The step-by-step procedure has been mentioned as under:

  • Obtaining a Digital Signature Certificate and DIN (Director’s Identification Number)
  • Confirming the availability of the name
  • Successful filling of the form SPICe+INC-32 for convenience
  • Filling up of e-MOA and e-AOA
  • Last but not the least, completion of the PAN and TAN applications
  • Allotment of GSTIN

Once done successfully with the registration process, it will become easy to run the company as desired. Interested to know about some lucrative benefits that are associated with a private limited company? Here they are…

What are Some Exclusive Advantages Associated with a Private Limited Company?

There are innumerable advantages associated with a private limited company. Below are some of the remarkable ones for which maximum investors prefer registering their companies as private limited:

  • Unlimited capital to invest – First and foremost, there is no minimum amount of money specified to invest in the case of a private limited company. It may be any amount of money ranging from Rs.5,000 to crores. It depends on the overall budget of the shareholders. Once the growth starts, further steps can be taken accordingly.
  • A legal identity that is completely separate – A private limited company legally is considered a completely separate identity. The count for the assets and liabilities of the business as well as that of the Directors is different. As the company separates management and ownership, the managers will be responsible for the overall success of the company.
  • Lots of alternate ways for raising funds – A private limited company in India will be able to raise funds from various alternate sources. Some of the most popular sources include capitalists and angel investors.
  • Easy transferring of shares – The shares of the company can be easily transferred from one shareholder to the other. From the filing to the signing of a share transfer with the help of a share certificate, every activity can be easily carried out.
  • Zero interruption in terms of existence – With perpetual succession, the operations of a private limited company will hardly be affected by the death or departure of any member. The activities will continue irrespective of the change in the name of membership. This is one of the highly remarkable characteristics of such a company.
  • Foreign Direct Investment Permit – In the case of a private limited company, Foreign Direct Investment is permitted. It means that any person belonging to an offshore country will be able to invest in the company.
  • Easy building of credibility – As the particulars and necessary details of a private limited company are available in a public database, it will help in improving the credibility of the company. It makes it easy to authenticate the details of the company in the best possible manner.

Last but not least, a private limited company comprises a limited amount of liability. It means, that if the company undergoes any type of financial distress due to any reason; still the personal assets will hardly be utilized for paying the debts of the company. This is because the liability of the person is available in a limited amount.

Why Choose TaxSavvy for Enlisting Your Business?

Once you are done with coming across the lucrative benefits and details associated with a private limited company, you must be planning to enlist your business in the same manner. While carrying out your research, you will be swarmed by a wide number of sources that will help in this regard.

Opting for TaxSavvy will let you ease in terms of legal compliance procedures. An integrated platform will let your business to adhere various types of forms to let in the smooth running of the same. We have gained a reputation for promoting the automated process for simplifying the complete registration process.

Setting up a business anywhere in India is not a small cup of tea. It requires a high investment and the completion of several formalities. Keeping these points in high consideration, we have come to provide you with the best service at an affordable price rate. Come, shake hands with us, and give a kick-start to your dream of setting up a business!

 

Benefits of PRIVATE LIMITED COMPANY

  • Artificial legal person

    A company is an artificial person as it is created by law. It has almost all the rights and powers of a natural person. It can enter into a contract. It can sue in its own name and can be sued.

  • Incorporated body

    A company must be registered under the Companies Act. By virtue of this, it is vested with a corporate personality. It has an identity of its own. Although the capital is contributed by its members called shareholders yet the property purchased out of the capital belongs to the company and not to its shareholders.

  • Transferability of shares

    The shares of the company are easily transferable. The shares can be bought and sold in the stock market.

  • Capital divisible into shares

    The capital of the company is divided into shares. A share is an indivisible unit of capital. The face value of a share is generally of a small denomination which may be Rs 10, Rs 25, or Rs 100.

  • Perpetual existence

    A company has an independent and separate existence distinct from its share holders. Changes in its membership due to death, insolvency, etc. does not affect its existence and its continuity

FAQs on PRIVATE LIMITED COMPANY

The registrar of companies (RoC) across India expect applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
All directors must provide identity and address proof, as well as a copy of the PAN card (for Indian nationals) and passport (for foreign nationals). No-objection certificate must be submitted by the owner of the registered office premises.
Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.
These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a one person company, if you are the sole owner of the company.
There is no minimum capital required for starting a private limited company.
Yes, a salaried person can become the director in a private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.
No, one cannot convert an LLP into a private limited company as it is not a MCA. The LLP Act, 2008 and the Companies Act, 2013, both don’t have any provisions on conversion of the LLP in a private limited company. However, if one wants to expand their business they can register a new private limited company with the same name. The LLP company needs to just issue a no objection certificate.
TaxSavvy can integrate a private limited company in 14-15 days. The time taken also depends on the relevant documents provided by the applicant and the speed of approvals from the government. To ensure speedy registration, kindly pick a unique name as the proposed company name and also ensure that you have all the required documents prior to the starting of the registration process.
Yes, the company can be registered at the owner's home address. A copy of the utility bill is required to be submitted.
Yes, it is good to register a family member as a partner. At a later stage one can change this or transfer shares of the directors.
The entire procedure is done online and one does not have to be present at our office or any other place for the incorporation. A scanned copy of the documents has to be sent via mail. They get the company incorporation certificate from the MCA via courier at the business address.
Yes, a NRI or a foreign national can become a director of a private limited company. He or she must obtain a DIN from the Indian RoC. They can also hold a controlling stake in the company. As long as at least one director on the board of directors is an Indian resident.

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