Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
1. Minimum of 2 Shareholder and 2 Director are required for a Pvt. Ltd. Company registration, where director and shareholder can be same.
2. Maximum limit on number of shareholder prescribed in Pvt. Ltd Company is 200.
3. Maximum number of Director in a private limited structure can be raised to 15 without any special resolution.
4. Unsecured Loan is allowed from Director and its relatives only.
1. Private Limited Company Registration is comparatively fast (10-25 days varying state to state).
2. It’s easy to fetch funding in a private limited company by transferring of shares.
3. A private limited company is easy to convert in a Public Limited company at any stage subject to fulfillment of eligibility criteria.
4. Maintenance of Basic Compliances after registration of private limited company are comparatively simple.
5. There exists no Bar on Turnover and Capital in a private limited company structure unlike in One Person Company (OPC) .
PROCEDURE IN ONLINE PRIVATE LIMITED REGISTRATION
DSC OF DIRECTOR
DIN OF DIRECTOR
Preparation of INC- 29
(which Includes Name reservation, various declaration, MOA/AOA Registration etc)
Wait for approval from ROC