Private Limited Company Incorporation Formation

PRIVATE LIMITED COMPANY INCORPORATION

A private limited company is a privately held business entity held by private stakeholders. The liability arrangement, in this case, is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them. The startup ecosystem currently prevailing in India as well as in the world demands that business owners be well aware of multiple business registration options which may include sole proprietorship, limited liability partnership, partnerships, one-person companies and private limited companies. 

In legal terms, Section 2 (68) of the Companies Act, 2013 defines a private company as: 

“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.”

1) 

2) List all the benefits

3) List all the documents required for registration

4)Procedural steps to register  

CHECKLIST TO ASCERTAIN THE REQUIREMENTS OF A PRIVATE LTD. CO. AS PER COMPANIES ACT, 2013

• Two Directors: A private limited company must have at least two directors, with a maximum of fifteen. At least one of the company’s  directors must be a resident of India.

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• Unique Name: The name of your business must be unique. The suggested name should not match any existing co. or trademarks in India.

 Minimum Capital Contribution: There is no minimum capital amount for a co.. A co. should have an authorized capital of at least ₹1 lacs.

Registered Office: The registered office of a co. does not have to be a commercial space.

BENEFITS OF REGISTERING AS A PVT. LTD. CO.