Private Limited Company Incorporation

Definition of Private Company

The  рrivаte  соmраnies  аs  defined  under  Seсtiоn  3(1)(b)  оf  the  Соmраnies  Асt, 2013  аre  very  restriсtive  in  nature  wherein  it  may  in  its  Аrtiсles  оf  Аssосiаtiоn  restriсt  the  right  tо  trаnsfer  shаres.  The  number  оf  members  in  suсh  а  соmраny  might  be  а  mаximum  оf  50.  The  shаres  аnd  debentures  оf  suсh  соmраnies  аre  nоt  аvаilаble  fоr  the  рubliс  аt  lаrge.  The  number  оf  members  in  а  соmраny  tо  be  саlled  а  рrivаte  соmраny  is  twо,  wherein  it  is  сleаrly  set  thаt  twо  members  jоintly  hоlding  а  single  shаre  shаll  be соnsidered  аs  оne  member  аnd  nоt  twо  members.  The  eаsy  identifiсаtiоn  оf  Рrivаte  соmраnies  is  the  ‘Рvt.  Ltd.’  аttасhed  tо  its  nаme.

What is Private company

Private company means a company having a minimum paid-up share capital as may be prescribed*, and which by its articles,—

(i)            Restricts the right to transfer its shares

(ii)           Except in case of One Person Company, limits the number of its members to two hundred

 (iii)         Prohibits any invitation to the public to subscribe for any securities of the company

The requirements of having a minimum paid up share capital shall not apply to a section 8 company (Registration of companies with charitable objects, etc.

The above-mentioned exemption shall be applicable to a section 8 company which has not committed a default in filing its financial statements under section 137 of the Companies Act, 2013, or annual return under section 92 of the said Act with Registrar. [Vide amendment notification G.S.R. 584(E) dated 13th June 2017.]

*Since nothing has been prescribed so far, thus, there is no minimum paid up share capital to form a private company.

Feature of Private Company Registration

For Businesses Raising Funding- Fast-growing businesses which will require funding from venture capitalists (VCs) got to register as private limited companies. This is often because only private limited companies can make them shareholders and offer them a seat on the board of directors. LLPs would require investors to be partners and OPCs cannot accommodate additional shareholders.

• Limited Liability: Businesses often got to borrow money. In structures like General Partnership, partners are personally responsible for all the debt raised. If it can’t be repaid by the business, the partners would need to sell their personal possessions to try to do so. during a private Ltd., only the quantity invested in starting the business would be lost the directors personal estate would be safe.
• Requires Greater Compliance: In exchange for the convenience of easily accommodating funding, the private company set-up must meet the compliances under the businesses Act, 2013. These range from a statutory audit, annual filings with the Registrar of Companies (RoC), annual submission of IT returns, also as quarterly board meetings, the filing of minutes of those meetings, and more.
• Few Tax Advantages: The private company is assumed to possess many tax advantages, but this is often not actually the case. There are some segment-specific and industry-specific advantages, but taxes are to be paid at a flat rate on profits.
• Members – to start out a corporation, minimum number of two members is required and a maximum number of 200 members as per the provisions of the businesses Act, 2013.
• Limited Liability – The liability of every member or shareholder is restricted. It means if a corporation faces loss under any circumstances then its shareholders aren’t susceptible to sell their own assets for payment. Thus, the private, individual assets of the shareholders aren’t in danger.
• Perpetual succession – the corporate keeps on existing within the eyes of the law even within the case of death, insolvency, the bankruptcy of any of its members. This results in a perpetual succession of the corporate. The lifetime of the corporate keeps on existing forever.
• Index of members – An index of the names entered within the respective registers of members and therefore the index shall, in respect of every folio, contain sufficient indication to enable the entries concerning that folio within the register to be readily found. the upkeep of the index of members isn’t necessary just in case the amount of members of the corporate is smaller amount than fifty. This may be a privilege to a private company wherein the number of members is smaller amount than fifty.
• Variety of directors – When it involves directors, a private company must have minimum of two directors. With the existence of two directors, a private company can inherit existence and may start with its operations.
• Paid-up capital – there’s no minimum capital requirement.
• Prospectus – Prospectus may be a detailed statement of the corporate affairs that is issued by a corporation for its public. However, within the case of private Ltd., the act prohibits any invitation to the general public to subscribe for any securities of the company; there’s no such got to issue a prospectus because, during this sort of company, the public isn’t invited to subscribe for the shares of the corporate.

Procedure to register Private Company

Once a name for the company is decided, the following steps have to be taken by the Registration Bazar:

Step 1: Application file for DSC of Directors (Digital Signature Certificate)

Step 2: File Spice Part A for the name availability

Step 3: After name approval Registration Bazar will be prepare the various form for company Registration.

Step 5: After approval of the company registration form Certificate of incorporation will be issued by ROC with PAN and TAN

Documents for incorporation of Private Company

To proceed for private Company Registration, Registration Bazar need some documents-

1. Photo of directors.
2. PAN card of directors.
3. Any one ID proof for directors address

Aadhar Card

Voter ID

Passport

Driving License

1. Any one address proof for director’s address.

Bank statement having latest 30 days entry

Bank Passbook with entries page having latest 30 days entry

Electricity Bill in name of director and nominee

Airtel / Vodafone / Idea / MTNL / BSNL bill in name of director and nominee

1. Any one bill in anybody name for registered office address

Latest Electricity Bill

Latest Mobile Bill – Airtel / Vodafone / Idea / MTNL / BSNL bill

Documents Provided by Registration Bazar after Private company Registration.

1. Certificate of incorporation
2. PAN Card of Company
3. TAN Card of Company
4. ESI Registration
5. PF Registration
6. Memorandum of Association of the company
7. Article Of Association of the company
8. Digital Signature Certificate of directors
9. Director Identification Number (DIN) of Directos

Why Choose Registartion Bazar

Registration bazaar is India’s largest Registration services provider for new entrepreneur at lowest price. We understand that new entrepreneur faces many problems at the initial stage. Now registration bazar provides registration of Private Company at lowest price at a single click. We have an expert team of Professional like. Chartered accountant, company secretary, Cost accountant, Advocate. We provide all the services Such as Companies/ LLP’s Registration, Roc Compliances, SEBI Compliances, RBI Compliances, FEMA Compliances, GST, Income Tax, PF, ESI, MSME Registration, and all type of financial and financial Advisory services, etc. under a single roof.