All You Need To Know About Planning To Start A Private Limited Company

By Author: PKG CONSULTANCY
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Before you start a private limited company, you need to know the definition of the same. A private limited partnership is a company that its shareholders own. Private investors own it. In this, the liability structure is similar to that of a limited partnership, where a shareholder's liability is limited to the number of shares they own.

1.It restricts the freedom to sell the shares;
2.Even in the case of a Person Corporation, limits the number of shareholders to two hundred; and
3.Bans any public offer to subscribe for the Company's securities.

Documents needed to form such a business.

The following documents are required for a private limited company registration:

1.PAN card and passport of Indian and international directors, respectively, as proof of identity.
2.Ration cards, Aadhar cards, driver's licenses, or voter ID are acceptable forms of identification.
3.A bank statement or a premise's utility bill is appropriate proof of residence.
4.The rental deal ...
... that has been notarized
5.The property owner's permission is required.
6.A copy of the land deed or the sale deed (for an owned property)

How to Form a Private Limited Company (Pvt Ltd)
After you've decided on a name for your Company, follow the steps below:

1.Fill out a DSC application (Digital Signature Certificate): To file the forms for company incorporation, digital signatures are needed. The identification is made electronically, where the documents need to be signed digitally. In the memorandum and articles of association, DSC is required for both subscribers and witnesses. Digital signature certificates must be obtained from government-approved certifying organizations. You will find a list of such accredited organizations here. Alternatively, you can get your DSC in just two days by ordering it online. The price of DSC varies depending on the certifying agency.

2.Please apply for a DIN (Director Identification Number): A director's DIN is a number that identifies him or her. Anyone who wishes to serve as a director of a corporation must receive it. One DIN is sufficient to serve as a director in any number of businesses.

3.Apply the name's availability. Creating a Corporation Using the RUN (Reserve Unique Name) Form: The Ministry of Corporate Affairs (MCA) has launched the RUN web service for business formation. RUN only allows applicants one opportunity to apply. There are no second opportunities if the name is rejected due to a name resemblance with a licensed firm, an LLP, a patent, or non-compliance with the Companies (Incorporation Rules) 2014. To stop the denial, you must be sure of the proposed name and meet name availability rules as well as existing trademarks. The applicant must submit a new RUN form with the required fee.

4.File the private limited business by filing the EMoa and EAOA.
5.Request the Company's PAN and TAN.
6.RoC will grant a certificate of incorporation with a PAN and TAN.
7.Open a new bank account in the name of the Company.
8.All of the Company's customers must sign an Affidavit on Stamp

Paper stating their desire to become shareholders.
These steps are mandatory for private limited company registration.

You'll be ready to launch your own private limited business after you've completed this. It is recommended that you meet with the appropriate people and make the best decision to ensure smooth progress.

Requirements for being a private limited company

1. The Company's Board of Directors must consist of at least two adults.
2. A minimum of two directors is required, with a limit of fifteen.
3. An Indian Citizen and Resident must be one of the directors of a private limited company.
4. A foreign national will be one of the other directors.
5. A company's shareholders must be at least two people.

Why should you register?

Legal Entity in Its Own Right

Under the Act, a corporation is a legal body and a juristic individual. As a result, a corporation has a wide variety of standard capabilities, including purchasing land and incur debts. A company's owners (Shareholders/Directors) are not personally liable to the Company's creditors for the debts.

Existence without Interruptions

The term "perpetual succession" refers to a company's continuous life until it is officially disbanded. As a single legal person, a business is unaffected by the death or other expulsion of either of its members, and it continues to survive regardless of ownership changes.

Having a Home

As an artificial being, a corporation may purchase, possess, enjoy, and alienate property under its name. A company's property could include equipment, buildings, intangible assets, properties, residential property, factories, etc. As long as the firm remains a going business, no creditor can claim the Company's assets.

Limitation of Liability

Restricted responsibility means that you are only technically liable for a certain percentage of a company's debts. Unlike sole proprietorships and trusts, the owners' responsibility for the Company's obligations is limited to the amount of money they have deposited in the Company.