Private limited company is a form of business which is registered, incorporated and ggoverned by The Companies Act, 1956. A Private Limited company is an association of persons formed for carrying out business activities and has a legal independent status. The company is a separate legal identity having its own signature known as common seal. The shareholders of the company are the actual owners of the company while the Board of Directors is the chief managing body elected by the shareholders for the options of the company.
Salient features of the Private Limited Company are as follows:
The private limited company is the separate legal entity. The shareholder of the company are the actual owner of the company. The liability of the shareholder are limited upto the amount they have invested in the firm. The assets and liabilities are separate from those of its shareholders. The law does not recognize the business and owners to be one and the same.
The minimum number of shareholders required to form a company is 2. As per The Companies Act, maximum number of shareholder cannot exceed 50 members.
The company is an artificial person having its unique name, signature(Common seal), asserts and liabilities and its own intellectual asserts. The company never dies. It can be dissolve with proper process prescribed in the law. A company being a creation of the law, can be brought to an end only by law and that too is not an easy process. Like other persons, a company can incur debts, borrow money, enter into contracts, sue and be sued and have its own cibil record. It is, therefore, called an artificial person.
As compared to the sole proprietorship, partnership or LLP, a company has large financial resources. Further, capital can be attracted from the public as well as through loans from banks and financial institutions. A company can also raise the funding through Debentures and Preference Shareholding. Thus there is greater scope for expansion. The investors and shareholders are inclined to invest in shares because of the limited liability, transferable ownership and possibility of high returns in a company. If the total number of shareholder increased than 50, Private Limited company can convert into the Limited Company.
The following process is required for registration of Private Limited Company:
Promoters have to submit their documents with MOA and AOA. Promoters have to appoint CA, CS and a lawyer for the company. The forms are filled with all necessary documents.
Every company is an artificial person with a unique name. Therefore the name is approved after checking of all the documents. Promoters have to choose two names, primary and secondary. In case both the names got rejected, promoters have given one more chance to submit other names.
DSC are the Digital Signature of the Promoters. All forms are digitally signed and submitted. After approval of the name, Promoters have to sign the some documents and submit.
|| COMPANY REGISTRATION ||
|| MSME REGISTRATION ||
|| TAN REGISTRATION ||
|| GST REGISTRATION ||
|| FSSAI REGISTRATION ||
|| SME REGISTRATION ||
|| TRADEMARK REGISTRATION ||
|| IMPORT EXPORT REGISTRATION ||
|| ESI & EPF REGISTRATION ||
2. Pan Card
3. Aadhar Card
4. Bank Account
5. Address Proof of office
6. Copy of Ownership Proof