Pvt Ltd Company

A private limited company, is a type of privately held small business entity.

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Pvt Ltd Company Registration Packages

Basic

15000 8990
  • Company Name Approval
  • Company Incorporation
  • DSC upto 2 Directors
  • DIN upto 2 Directors
  • PAN
  • TAN

Standard

15000 9990
  • Company Name Approval
  • Company Incorporation
  • DSC upto 2 Directors
  • DIN upto 2 Directors
  • PAN
  • TAN
  • PF Registration
  • ESI Registration
  • GST Registration

Premium

20000 11990
  • Company Name Approval
  • Company Incorporation
  • DSC upto 2 Directors
  • DIN upto 2 Directors
  • PAN
  • TAN
  • PF Registration
  • ESI Registration
  • GST Registration
  • Import Export Code (IEC)

What is Pvt Ltd Company?

A private limited company, is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares

Minimum requirement for formation of Pvt ltd

1. Unique Name:

  1. To start a Private Limited Company, the Company should have a unique name.
  2. Name approval is received by the Ministry of Corporate Affairs of the Company.
  3. The name should be unique and should not resemble with registered Trademark.

2. No. of Shareholders:

  1. The Private Limited Company should have at least two shareholders for it to commence its business.
  2. Here, there is no such limit of shareholding by one member. For E.g.: One Member can hold 99% shares while the other member can hold 1% shares.

3. No. of Directors:

  1. A Private Limited Company should have a minimum of two directors.

4. Capital required:

  1. 100000 is the minimum capital required to incorporate a Private Limited Company.

5. Digital Signature:

  1.  All the subscribers/promoters/shareholders/members are required to have a digital signature to register a Private Limited Company.

Documents required for Company Registration

The documents required for incorporation of a Private Limited company is enumerated as follows:

  • PAN Card of all Directors
  • Passport size photograph of all directors
  • Identity Proof – Voting Card/Passport/Driving License of all Directors.
  • Address Proof – Mobile Bill/Bank Statements/Electricity bill of all Directors.
  • Address proof of the registered office – Electricity Bill of the address of the proposed Company.
  • Rent Agreement with NOC from owner of registered address of the proposed Company.

Function / Benefits of Pvt Ltd

A private limited company (pvt ltd company) is the most common vehicle to carry on business for an entity intending to make a profit and enjoy the benefits of an incorporated entity, particularly limited liability. Besides, limited liability and minimal statutory compliances, pvt ltd companies offer the following advantages:

Separate Legal Entity

An entity means something which has a real existence; a thing with distinct existence. A company is a legal entity and a juristic person established under the Act. A juristic person is a person who is not a natural person or human being. Therefore, a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts. Hence, a pvt ltd company is a legal entity separate from that of its members.

Uninterrupted existence

A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership. Perpetual succession is one of the most important characteristics of a company.

Limited Liability

Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company’s debts is limited. In other words, the liability of the members of a company is limited only to the extent of the face value of shares taken up by them. Therefore, where a company is limited by shares, the liability of the members on a winding-up is limited to the amount unpaid on their shares.

Free & Easy transferability of shares

Shares of a company limited by shares are transferable by a shareholder t any other person. The transfer is easy as compared to the transfer of interest in business run as a proprietary concern or a partnership. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.

Owning Property

A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern. The shareholders are not the owners of the company’s property. The company itself is the true owner.

Capacity To Sue And Be Sued

To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entity can sue and also be sued in its own name.

Dual Relationship

In the company form of organization, it is possible for a company to make a valid and effective contract with any of its members. It is also possible for a person to be in control of a company and at the same time be in its employment. Thus, a person can at the same time be a shareholder, creditor, director and also an employee of the company.

Borrowing Capacity

A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.

Procedure / Steps of Pvt Ltd Company Registration

Get Free consultation / advice by our experts after filling up enquiry form or contacting us

Our expert will evaluate your documents as shared

We will Prepare and file all the required documents with all the required details with appropriate authority.

Our expert will follow up with /provide information to the clarification seek by filing authority to get your application processed at the earliest

Your requirement is now completed & your appropriate registration certificate will be sent to you.

Procedure / Steps of Company Formation

Obtain digital signature: A company before incorporation must apply for digital signature. A digital signature is required to copy all the documents and certificate. Therefore, it required by every direction to have a digital signature.

Obtain director identification number: Under sec 159 of the companies act it is required for every director to obtain an identification number from central government. Therefore, before submitting the documents for incorporation, every director should have DIN. If any director doesn’t have DIN they cannot apply for incorporation.

Name approval: Every company must think of a unique name for its company. Every company has to submit the list of 5-6 names in accordance with the preference to ROC i.e. registrar of the company. If the ROC is satisfied with the name then you will receive a name approval letter. The applicant cannot start working or enter into an agreement until he/she receive a letter of name approval from the ROC.

Preparation of MOA and AOA: Memorandum of association and articles of association must be prepared by the company. MOA is a document containing the objective and powers of the company. AOA is a document containing the rules and regulations for the internal management of the company. These two documents are very important to prepare as they are the charter and rules and regulations of the company.

Application for the incorporation: After completing all the above-mentioned steps you can file an application for incorporation of the company. The application should be filed with the registrar of the company with form 7 and form 22. Form 7 is a detailed statement about company’s memorandum of association and articles of association. Proof of residential address, proof of identity, NOC if there is the change in promoters, pan card should also be attached with the application.

Receiving the certificate: If after the filing of all the above documents the registrar is satisfied with all the documents then he will issue a certificate of incorporation in form 11. After receiving this certificate, the company can move to other steps in formation of the company.

In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7500 will be applicable. In case of incorporation in Punjab, an additional stamp duty of Rs.10, 000 will be applicable. In case of Kerala, an additional stamp duty of Rs.3000 will be applicable.