{"id":53,"date":"2018-10-25T12:29:15","date_gmt":"2018-10-25T12:29:15","guid":{"rendered":"https:\/\/www.earnlogic.in\/blog\/?p=53"},"modified":"2018-11-02T08:54:16","modified_gmt":"2018-11-02T08:54:16","slug":"private-limited-company-registration","status":"publish","type":"post","link":"https:\/\/www.earnlogic.in\/blog\/private-limited-company-registration\/","title":{"rendered":"Private limited company registration"},"content":{"rendered":"

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A\u00a0private limited company\u00a0registration<\/a> is not compulsory but can provides good number of benefits if registered.Private limited company<\/a> is generally a company that is privately held for small businesses by two people or more. The liability of the members are \u00a0limited to the amount of shares \u00a0held by them respectively. There can be a maximum of two hundred shareholders and number of directors can vary between two to fifteen.<\/p>\n

The following are the basic characteristics of a Private Limited Company:<\/p>\n

1)Members<\/strong><\/p>\n

A minimum of 2 members and a maximum of 200 members are required to start a company according to the Companies Act,2013.<\/p>\n

2)Limited Liability<\/strong><\/p>\n

The liability of each shareholder or member is limited which means that if a company happens to face any loss then its shareholders are responsible to sell their assets for payment.<\/p>\n

3)Perpetual succession<\/strong><\/p>\n

The company continues to exist despite the death of any business member, bankruptcy, change in membership or ownership or transfer of any shares or stock. This uninterupted existence is called as perpetual succession.<\/p>\n

4) Index of members<\/strong><\/p>\n

A private limited company<\/a> is not expected to maintain any index of its members.<\/p>\n

5)A number of directors<\/strong><\/p>\n

The number of directors can range between two to fifteen.<\/p>\n

6)Paid up capital<\/strong><\/p>\n

The company<\/a> should have a minimum of Rs 1 lakh paid up capital or such huge amount which may be prescribed at regular intervals.<\/p>\n

7)Prospectus<\/strong><\/p>\n

Prospectus is a comprehensive statement of the company\u00a0 which is issued by itself for its public. So, you don’t provide any prospectus in case of a private limited company<\/a> because the public is not included for any of the company’s shares.<\/p>\n

8)Minimum subscription<\/strong><\/p>\n

90% of the shares issued is the amount received by the company. If the company fails to receive the amount then they cannot proceed business further and in that case, shares of the private limited company<\/a> can be allotted to the public.<\/p>\n

9)Name<\/strong><\/p>\n

For registering a private limited company<\/a>, it is mandatory to use the word private limited after its company name.<\/p>\n

Requirements of \u00a0Private limited Company Registration:<\/strong><\/p>\n

The \u00a0private limited company registration requirements are as follows:<\/p>\n

1)Members<\/strong><\/p>\n

Minimum two member of shareholders and maximum of 200 members according to the Companies Act,2013 before your company registration<\/a> process.<\/p>\n

2)Directors<\/strong><\/p>\n

\u00a0<\/strong>The number of directors should be 2\u00a0 for registering a private limited company.<\/a> Every director should have DIN i.e. director identification number and one should be a resident of India.<\/p>\n

3) Name<\/strong><\/p>\n

The \u00a0company’s name has \u00a0three parts such as the activity, the name and private limited company. For registering a private limited company\u00a0<\/a>it is mandatory to include the word private limited company after their company name. Every company must send up to 5-6 \u00a0unique and expressive names \u00a0for approval. The company name confirmation should not match with any of the existing company.<\/p>\n

4) Registered office address<\/strong><\/p>\n

During private limited company registration<\/a>, the owner should submit the present company address of until the company is not registered. After the company registration its permanent address of the registered office should be adapted with the registrar of the company. This is the place where companies important events are held and documents are maintained.<\/p>\n

5) Obtaining digital signature certificate<\/strong><\/p>\n

\u00a0<\/strong>The private limited company<\/a> directors and their documents are submitted electronically for getting their digital signature certificate\u00a0which is helps to confirm the directors verification. A digital signature is mandatory for all directors for signing on every document.<\/p>\n

6) Professional certification<\/strong><\/p>\n

The professionals like chartered accountant, cost accountant, company secretaries should have a \u00a0certification at the time of registration.<\/a><\/p>\n

\u00a0The documents required for private limited company registration:<\/strong><\/p>\n