A private limited Company is that form of a Company that is privately held by a director or a group of Directors for a small scale business. The liability of the members of this firm of a Company is limited to the number of shares that are held by them. The share of the Pvt Ltd Company registration cannot be publicly traded.
Guidelines for Pvt ltd registration
A Private Limited Company is the most popular as well as the most preferred choice of business entity in India. For a new private limited Company registration, it requires a minimum of 2 members, it is most appropriate for small and medium-sized businesses and start-ups. This Pvt Ltd firm is a business entity with limited liability which allows for a 100% foreign direct investment with government approval.
If you register Pvt ltd, then it can be started with a minimum of 2 shareholders. The maximum limit maybe two hundred shareholders. The compliances of a private limited Company are very much simpler to that of a Public limited Company when compared. One of the directors needs to be a resident in India in order to register a Company and the resident director can be a spouse or family member of the non-resident directors.
Benefits of Pvt limited Company registration India:
When you apply for Company registration in India, benefits would follow. There are many benefits for a Company registration of which cannot be debated about. Let us look into some of the benefits of a Pvt limited Company registration in India. These are as follows:
- Ease of Formation- A Private Limited registration just needs to have a minimum of 2 directors by filing SPICe E Form INC-32 along with link form SPICe MOA (INC-33) and SPICe AOA (INC-34). After the verification of the documents, the Certificate of Incorporation (COI) can then be issued to the Company by MCA. This is done within 2 to 3 days under Fast Track Registration the firm’s continuity.
- Limited Liability- The liabilities of each and every member of the Company is limited. If there is any liability which arises then the members are not affected PERSONAL MATTERSly. They are just liable for the unpaid shares they hold in the firm. There is no risk of any PERSONAL MATTERS or individual asset of the shareholders.
- Secrecy- A Private Limited Company is not allowed to publish its accounts and file several documents, as prescribed by the Company Law. Thus, if you register as Pvt Ltd firm then you can maintain business secrets.
- Investment- A Private Limited Company can easily raise loans and investments from NRIs and foreigners, without any problems.
- Owning Property- The Company cannot be claimed to be owned by any of the shareholders of the Company as they are not the owners of the firm. No single person can acquire, own, enjoy and alienate, property in their own name.
The Private Limited Company can also make a valid and effective contract with any of its members if it wishes to. A person can work for the Company and at the same time control the Company which means a person can be a shareholder, creditor, director and even an employee of the Company.