Private Limited Company
DEFINITION OF A PRIVATE LIMITED COMPANY
The Company is a Private Company within the meaning of Section 2(68) of the Companies Act, 2013. "Private Company" means a company having such paid-up share capital as may be prescribed and which by its articles,-
(i) restrict the right to transfer its shares;
(ii) except in case of One Person Company, limits the number of its members to two hundred:
Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:
Provided further that
(A) persons who are in the employment of the company; and
(B) persons who, having been formerly in the employment of the company, were members of the company
while in that employment and have continued to be members after the employment ceased,
shall not be included in the number of members; and
iii. prohibits any invitation to the public to subscribe for any securities of the company.
TYPES OF PRIVATE LIMITED COMPANY:-
There are three types of Private Limited Company registrations:-
1. Company Limited by Shares:-
2. Company Limited by Guarantee:-
3. Unlimited Company:-
CHARACTERISTICS OF A PRIVATE LIMITED COMPANY:-
Members:-
Minimum 2 members and maximum 200 Members are required.
Number of directors:-
Minimum 2 directors and maximum 15 directors.
Limited liability:-
The liability of all members or shareholders of a private limited company is limited. It means members will be liable to repay for only the amount of the shares subscribed or the guaranteed amount they have agreed to pay.
Perpetual succession:-
Perpetual succession means the company will continue to exist in the eyes of the law irrespective of insolvency, bankruptcy or death of any of its members. The life of the company continues to exist forever.
Authorised and paid-up share capital:-
The private limited company must have an authorised share capital of Rs.1 lakh. Due to an amendment to the Companies Act, it need not have any minimum paid-up share capital.
- Authorized Capital- Authorized capital, nominal or registered capital, represents the maximum capital a company's shareholders can invest and own.
- Paid-up Capital- It is the amount of capital for which company has issued shares to its shareholders
DOCUMENTS AND INFORMATION REQUIRED FOR PRIVATE LIMITED COMPANY FORMATION
- Self-attested Aadhar Card/Voter Id/Driving License/Passport of all the Directors and Shareholders of the Company
- Self-attested PAN Card of all the Directors and Shareholders of the Company
- Residential Proof of all the Directors and Shareholders of the Company (Bank Statement or Bank Passbook with latest transaction/Electricity Bill/Water Bill/Telephone Bill/Mobile Bill) (Not older than 2 months)
- Passport size photo all the Directors and Shareholders of the Company
- Registered office Proof (Electricity Bill/Telephone Bill/Gas Bill/Water Bill (Not older than 2 months) and NOC/Rent Agreement
- Mobile and Email of all the Directors and Shareholders of the Company
- Shareholding Ratio of each Subscriber
- Email Id of the Company
PROCESS OF PRIVATE LIMITED COMPANY INCORPORATION: -
1. Obtain a Digital Signature Certificate (DSC).
2. Application for Name Approval.
3. Filing of Application for Incorporation.
4. Certificate of Incorporation (Including PAN, TAN, EPF, ESI)
