Private Limited Company - A Best Suited Company Formation in India
Private Limited Company Registration is most suited business formation for startups looking for funding and long term growth with consistent business objectives. Private Limited Company is the most popular type of business entity in India that limits owner liability to the amount of share capital and limits the number of shareholders to 200. A Private Limited Company is considered as a separate entity with a dedicated PAN, TAN and Incorporation Certificate. The ownership of a Private Limited Company is represented by shares.
Key Features of a Private Limited Company
Business owners always prefer to register a Private Limited Company in India for different reasons, some of them are:
Separate Legal Entity: As per Companies Act, a company is an artificial judicial person which is a separate legal entity from its Directors and Shareholders. Thus a Company enjoys a wider legal capacity to own assets and properties and incur debts whereas the individual company members owe no liability towards the company’s creditors for debts.
Limited Liability: A Company has a limited liability towards a limited amount of debts. The liability of the members with reference to the Company’s debts is limited to the face value of the share purchased by them. This limited liability protection is a unique feature of a Private Limited Company in India.
Perpetual Succession: A Company is considered to be legally active until the winding up of the same through a legal process. A Company is not affected by the death, insanity, or insolvency of an individual member. Thus, It has a continuous existence of a corporation till it is dissolved legally.
Transferability of Shares: Shares of a Company can be transferred to any other person or legal entity in India or abroad, subject to the Article of Association of a Company and the shareholders agreement. This easy transferability of shares attracts most of the entrepreneurs to form a Private Limited Company in India.
Equity Raising: Only through the formation of a Company, the promoters can raise equity funding from Angel Investors, Private Equity Firms & Stock Exchange. A Private Limited Company would suffice for raising equity from Angel Investors and Private Equity Investors.
More Benefits to Scale Your Business
Better Image and Credibility in the Market: A Private Limited Company always carries a better image and credibility in respect of its customers as well as investors. Corporates, Vendors and Government agencies prefer to deal with a Private Limited Company.
Better positioned to raise Funds & Loans: A Private Limited Company carries a wide range of options to raise funds from bank loans, Angel Investors and Venture Capitalists in comparison to LLPs and OPCs.
Limited Liability Protection: A Company has a limited liability towards a limited amount of debts. The liability of the members with reference to the Company’s debts is limited to the face value of the share purchased by them. This limited liability protection is a unique feature of a Private Limited Company in India that protects the Directors personal assets.
It is simple to form an Private Limited Company
Before going for a Company Formation in India, one must ensure the minimum requirements of different parameters as per Companies Act 2013.
Company Name Must be Unique: A Company name must be distinct and unique. The proposed Company Name should not be similar to any existing registered Indian Companies or Trademarks.
Minimum Two Directors: A Private Limited Company must have at least two Directors, with a maximum of fifteen. Minimum one of Company’s Director must be a resident of India. However, Single Director is applicable only for One Person Company Registration.
Minimum Capital Contribution & Authorized Capital: A Company may have any Capital Contribution generally starting from Rs 1 Lakh, but must have a minimum Authorized Capital of Rs 1Lakh.
Registered Office: For a Private Limited Company Registration in India, a Company must have a registered address within India from where the basic business operation will be done. It is not mandatory to be a commercial location.
Easy documentations and process
Documents requirements for Company Formation in India is very simple and only scan copies of the documents required by the authorities.
Documents of the Directors of the proposed Company
- Photographs of both the Directors
- PAN Card, Aadhar Card and Voter ID
- Address Proof: Updated Bank statement/Electricity Bill/Telephone Bill/Mobile Bill(not older than 30 days) – any one
- Identity Proof: Voter ID Card/Passport/Driving License (any one)
- Consent of Director (Format will be provided)
Documents for Registered Office Address
- Latest Electricity Bill/Any Other Utility Bill in the name of the owner
- Rent Agreement between owner and proposed Company promoter.
- NOC from the owner (Format will be provided)
Private Limited Company Registration with TRUSTLINK
TRUSTLINK offers attractive package for Private Limited Company Registration. Our Private Limited Company Registration Package offers the following package with its clients:
- 2 Digital Signatures with Token
- Preparation of MOA & AOA
- DIN for Directors
- PAN and TAN of the Company
- PF & ESIC Registrations
- Incorporation Certificate
- Bank Resolution for Account Opening
- Free MSME Registration
- Free 1 year web hosting* with ssl.
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