Private Limited Company

For most start-ups, the private limited company is a good way to run their business. This type of firm offers limited liability for its shareholders and has certain restrictions on ownership. One must remember that partners in an LLP own and manage the business while directors may be different from shareholders in a private limited company.

A Private Limited Company is a popular form of business legal structure in India. The minimum members for a private limited company are two and the maximum members can be two hundred in number. The directors and owners of a private limited company have limited liability to their creditors and Banks/Creditors are allowed to sell only the assets of the company (when there is a scenario of default). Moreover, creditors do not have the authority to sell personal assets of directors. We will be glad to help you establish your own Private Limited Company in India.

Document and information required for setting of private limited company (PVT. LTD.) in India.

•  One colour passport size photo of all directors and shareholders
• Self-attested copy of PAN card of all directors and shareholders
• Self-attested identity proof issued by the government such as Voter ID, Driving License, Aadhar Card, Passport of All the Directors. 
• Business office address proof such as electricity bill or any other utility bill having complete address such ad Telephone Bill, Property, Gas Bill, Tax Bill.
• If business address is on rented premises, then rent agreement or NOC and if it is owned NOC.
• Name of purposed company, two or three names.
• Purposed company object or name of product of business details.
• Valid Phone no and Email ID of all purposed directors.

Benefit of setting business as Public Limited Company.

• A Private Limited Company is the most popular type of business incorporation. It is because a Private Limited Company allows you to attract funds and investors due to certain benefits such as Limited Liability, Promoter’s Liability, and easy exit for promoters.
• A private limited company is a type of business and ownership structure that limits the owner’s liability to their stake in the company. A private limited company has legal responsibilities, and must have a minimum of one director and a shareholder.
• A Private Limited Company is the most popular form of business entity in India to raise funds from external investors, such as, Venture capital funding or raising funds from Angel investors.
• Shares of a company are easy and free to transfer. You can transfer your shares in any company limited by shares anytime you want. The only requirement is filing an office share transfer form along with the share certificate of the stock you want to trade.

Process of setting business in India as private limited company

•  Step 1  Preparation of digital signature application and filing the same for DSC.
• Step 2  Documentation for private limited company registration such as NOC, Consent letter to act as director.
• Step 3  Preparation of name search report and filing name reservation application SPICE+ part A.
• Step 4  Drafting of Main Object of purposed company
• Step 5  Drafting and vetting of Memorandum and Article of Association as per Companies Act 2013.
• Step 6  Preparation of eform and filing the same with ROC for the approval of private limited company.
• Step 7  Issue of certificate of Incorporation (COI) by the ROC in 2 working days.
• Step 8  Issue of Income tax number such as PAN & TAN.
• Step 9  Drafting and vetting of resolution for opening bank account in the name of company.