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    Private Limited Company

    This is the most preferred form of business structure after LLP having limited liability of its Members. Private Limited Company can be incorporated with only two persons who can be Directors as well as Shareholders of the Company.

    • Separate legal entity
    • Perpetual succession
    • Limited liability of members
    • Easy transferability of ownership
    • Easy Financial Assistance



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    How it works?


    1.

    Learn about the service and get all-inclusive price

    2.

    Pay and submit documents online

    3.

    Our expert will do the requisite filings and get Certificate

    Overview


    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’.   An Individual 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. A private limited company is a structure popular throughout the world.

    Features


    • Separate Legal Entity

      As a juristic legal person, both the company and its members have separate legal identity that is distinct from each other.

    • Perpetual Succession

      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.

    Things to Know


    Unique Name

    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   Share capital of a company is divided into four parts:
    1. Authorized Share Capital: It means such capital as is authorized by the Memorandum of a company to be the maximum amount of share capital that can be raised by a company.
    2. Issued Share Capital: It means such capital as the company issues from time to time for subscription
    3. Subscribed Share Capital: It means such part of the capital which is for the time being subscribed by the members of a company
    4. Paid-up Share Capital: It means such aggregate amount of money credited as paid-up as is equivalent to the amount received as paid-up in respect of shares issued and also includes any amount credited as paid-up in respect of shares of the company, but does not include any other amount received in respect of such shares, by whatever name called. There is no minimum paid-up share capital prescribed for a private limited company. However, it is suggestible that the subscribers to the memorandum of association shall bring in some capital for carrying on the business operations of the company.
    Directors 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  
    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.      
    Registered Office
    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.  

    Process and Timelines


    Step 1.

    1-2 Days

    Obtaining requisite Documents and information

    Step 2.

    1-2 Days

    Obtaining DSC

    Step 3.

    1-2 Days

    Filing of Requisite forms with ROC

    Step 4.

    2-3 Days

    Certificate of Incorporation

    Document Required


      From Directors

    • Copy of residential proof (Bank Statement/Telephone Bill/ Mobile Bill/ Gas Bill not older than 2 months );
    • Consent to act as directors*;
    • Disclosure of interest in other entities*;
    • Copy of PAN (in case of resident);
    • Copy of Passport (in case of non-resident);
    • Copy of proof of identity (Voters ID/ Passport/ Driving License)

      From Company

    • Copy of Sale deed/ Property Deed (in case of owned property) or Lease Deed (in case of rented premises);
    • Copy of Telephone or Mobile/Electricity or Gas Bill of registered office (Any one, not older than 2 months) ;
    • No-objection Certificate from the owner of the premises for its use as registered office*
    • Memorandum and Articles of Association*

      From Subscribers

    • Copy of PAN (in case of resident) ;
    • Copy of Passport (in case of non-resident);
    • Copy of proof of identity ( Voters ID/ Driving License/ Passport);
    • Copy of residential proof( Bank Statement/ Telephone Bill/Mobile Bill/ Gas Bill not older than 2 months);

    Note: *Draft will be provided by our team

    Note: Following additional documents will be required in case the company to be incorporated is a subsidiary of another company: • Copy of resolution passed by the Parent company for incorporation of subsidiary company; • No-objection certificate from the parent company for using its name by the subsidiary company; • Certificate of Incorporation of the Parent company

    Why Companies Next


    At Companies Next, 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 private company registration include:

    • DSC for Subscriber and Directors
    • 2 DIN
    • Company Registration fees and stamp duty
    • Certificate of Incorporation
    • Company’s PAN and TAN
    • Comapny's EPFO and ESIC Registration
    • Professional Tax Registration (Maharashtra)
    • Opening of Bank Account
    • Drafting of Memorandum and Articles of Association
    • Drafting of requisite declaration(s), consent letters, etc.


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    FAQ's


    For setting up a private limited company, minimum of 2 and maximum of 200 shareholders are required and minimum of 2 and maximum of 15 directors can be appointed by any private limited company.
     
    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 the registration certificate (Certificate of Incorporation) is issued by the MCA, it is valid for life time of the company until it is voluntary or legally dissolved as per the provisions of the Companies Act, 2013.
     
    No, Tax Audit for a private limited company is not compulsory, until the turnover of any person carrying on business exceeds Rs.1 crore and for the persons carrying on profession exceed Rs. 50 Lacs.
     
    You must be careful while choosing a name of the private limited company, make sure it is unique and not similar with any other already existing company name or not resemble with any other registered trademark. Therefore, you have option to pen down 2 proposed names in order of preference at the time of filling Form RUN.
    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.
    Any commercial/industrial/residential premises can be used as a registered office of the company in India where communication from MCA will be received for the purpose of smooth functioning of the business.
    Private company does not have to comply with any minimum capital requirement during the incorporation of the company.
     
    DIN is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a 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 mandatory 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.
    Yes, a shareholder of the company can be a natural person or a body corporate.
     
    Yes, a salaried person can become a director in Private Limited Company, there are no legal bondages in this but you may have to go through with your employment agreement if it contains any restrictions in doing so.
    Yes. It is mandatory for all the new companies incorporated w.e.f 23rd February, 2020 to obtain EPFO and ESIC registration.
     
    Yes. All the new companies are required to apply for opening the company’s bank account through the Form AGILE PRO.
     
    No. Registration for Professional Tax  is mandatory only in respect of new companies incorporated in the State of Maharashtra w.e.f 23rd February 2020.
     
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