Private Limited Company
Private limited company is governed by Companies Act with minimum requirement of 2 directors and maximum 200, It is the feature of company that company is not just association of persons but it has separate legal entity. This is most popular form of business which benefits the entrepreneurs as having corporate identity and separate from its owners. It is an artificial person in the eye of law. It Comprises most of the features of Public Company, Partnership firm and Limited Liability Partnership. Because of Corporate image it enjoys many benefits which other forms of business generally lacks e.g. Limited Liability, Personal Assets of shareholders are not seized, and existence of business does not depend upon life of owners, easy to raise funds though financial institution etc. butcannot accept deposits from the public.The company’s shareholders (the owners) can limit their personal liability and are generally not responsible for company debts.In order to form a Company, a number of legal formalities have to be fulfilled e.g. It has to file Annual Reports to the ROC and get its accounts audited under companies act every year.
Separate legal Identity
Able to raise significant capital
Limited liability for shareholders
Well understood and accepted structure
Easy to sell and pass on Ownership
Steps to Incorporate Private Limited Company
Apply for the Digital Signature for the Directors required for company registration
Check for Name Availability
Issuance of Name Approval Letter from ROC
Sign and file various documents including MOA & AOA with the Registrar of Companies electronically.
Apply for the PAN Number and open a current bank account
Apply for the DIN (Director Identification Number)
Apply for the Name approval on the MCA Portal according to MCA Guidelines.
Draft Memorandum of Association (MOA) & Article of Association (AOA) in approved name
Issued Certification of Incorporation
Apply for other Licenses as required