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A Private Limited Company is a privately owned business entity formed for any lawful purpose under the provisions of the Companies Act, 2013 having minimum of two and maximum of two hundred members and the name of the company must end with the words ‘Private Limited’.
A company incorporated outside India seeking interest to start their operations in India as a start-up structure can incorporate a private limited company with substantially relaxed and lesser compliance regime as compared to a public limited Company.
Foreign direct investment in India has mainly two entry routes- Automatic Route and Government Route. Automatic Route is the entry route through which investment by a person resident outside India does not require the prior Reserve Bank approval or Government approval.
Government Route is the entry route through which investment by a person resident outside India requires prior Government approval. Foreign investment received under this route shall be in accordance with the conditions stipulated by the Government in its approval.
Separate Legal entity
As a juristic legal person, both the company and its members have separate legal identity that is distinct from each other.
A company existence is uninterrupted, even the death or insolvency of shareholder(s)/ directors cannot affect the continuity of business of the company.
Limited liability of members
The liability of members of a private limited company is limited to the amount of share capital remaining unpaid on the shares held by them.
Easy transferability of ownership
The ownership in a private limited company is easily transferable by way of transfer of shares from one member to another subject to the restriction that the total number of members of a private limited company cannot exceed 200.
Easy Financial Assistance
Private Limited Company is not allowed to borrow capital from public. However, its growth is not restricted hereby as it can attract finance from Private Equity Investors, banks and other financial institutions to meet its financial requirement/obligations without any restrictions.
The proposed name selected by you should be unique and should not resemble to the name of an existing company or Limited Liability Partnership.
Share capital of a company is divided into four parts:
Director is a person appointed to the Board of a company. Board of Directors of a company are entitled to exercise all such powers and to do all such acts and things as the company is authorized to exercise and do except those which are specifically required to be exercised by a company in general meeting. Minimum two directors are required to incorporate a private limited company out of which at least one must be resident in India.
Subscriber means a person who has agreed to subscribe to the share capital of the company and on its registration, whose name is entered as a member in the Register of Members. Minimum two subscribers are required to incorporate a private limited company. Subscribers of a company can be resident in or outside India. There is no restriction on a subscriber of a private limited company to be a director of the same company or vice versa.
It is mandatory for every company to have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it. Registered office of the company must be situated in India.
Obtaining requisite Documents and information
Filing of Requisite forms with ROC
Certificate of Incorporation
Note 1: In case of foreign directors/subscribers, all the aforesaid documents should be notarized and apostilled or consularized. In case documents are not in english, translated copy in english should be notarized and apostiled or consularized. please read the attestation requirements of documents below in FAQs
Note 2: *Draft will be provided by our team
Note 3: Following additional documents will be required in case the subscriber of the company to be incorporated is another company; Copy of resolution passed by the subscriber company; Certificate of Incorporation of the Subscriber Company.
At CompaniesNext, we have a dedicated team of professionals for providing quality services with accuracy and within given timelines. We provide a complete transparent and online platform for registration of your private limited company.
Our subsidiary private company registration include:
For setting up a private limited company, minimum of 2 and maximum of 200 shareholders are required. In addition, minimum of 2 and maximum of 15 directors can be appointed by any private limited company.
There is no restriction on a Member of a Private Limited Company to be a Director of the same company or asvice versa.
No, you are not required to be present at our office or appear at any office for the incorporation of a Private Limited Company. All the documents can be scanned and sent through email and the original hard copy can be couriered to our office.
Once a Company is incorporated, it will be active and in-existence until you liquidate it either by striking-off or winding up.
Investment by person resident outside India is prohibited in certain sectors namely:
The minor shall not be appointed as director of the company. He needs to be over 18 years of age and must be a natural person. Foreign nationals are also eligible to be a director in an Indian Private Limited Company provided that at least one of the director shall be resident of India.
Yes, the office can be commercial / industrial / residential which is capable of receiving and acknowledging all communications and notices as may be addressed to it is required which can be shown as the registered office of the Company.
To incorporate a Company quickly, make sure the proposed name of the Company is very unique. Names that are similar to an existing company / limited liability partnership / trademark can be rejected and additional time will be required for re-submission of names.
DIN is a unique identification number assigned to all existing and proposed Directors of a Company. Before a person gets appointed as a Director, he must obtain a valid DIN. DIN never expires and a person can possess only one DIN.
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued by Income Tax Department of India as a proof of identification for tax purposes. It is required for obtaining Digital Signature Certificate, opening bank account, various statutory registrations, to pay taxes and filing tax returns and many other transactions as prescribed by government time to time. It is mandatory for a company incorporated in India to obtain PAN.