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Private Limited Company Registration
Private Limited Company Registration
What is a Private Limited Company in India?
A private limited company in India is a distinct legal entity characterized by limited liability, where the shareholders’ liability is restricted to the amount invested in the company. This business structure ensures a clear separation between personal and corporate assets. In a private limited company, ownership is divided into shares held by a limited number of shareholders. Unlike public companies, shares in a private limited company cannot be freely traded on the stock market, fostering a more controlled and closely-knit ownership environment.
Operational flexibility is a key feature, allowing for efficient decision-making processes. The company must have a board of directors responsible for strategic decisions and overall management. Financial information is typically more confidential than public companies, as private limited companies are not obligated to disclose detailed financial data to the public. This structure is popular among small to medium-sized enterprises seeking a balance between limited liability protection and operational autonomy.
- Market Price : 13000 /-
- Incl of GST : 10899 /-
- Save : 3337 /- (26%)
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Types of Private Limited Companies
- Company Limited by Shares: This is the most common form of a private limited company. The liability of its members is limited to the amount unpaid on their shares. In the event of liquidation, shareholders are only liable for the nominal value of their shares.
- Company Limited by Guarantee: Unlike a company limited by shares, this type does not have share capital. Instead, members provide a guarantee, specifying the amount they will contribute in the event of winding up. Such companies are often prevalent in non-profit and charitable organizations.
- Unlimited Company: In this type, there is no limit on the liability of the members. Each member is personally responsible for the company’s debts. While less common due to the increased risk for shareholders, it provides greater flexibility in financial matters.
Operational flexibility is a key feature, allowing for efficient decision-making processes. The company must have a board of directors responsible for strategic decisions and overall management. Financial information is typically more confidential than public companies, as private limited companies are not obligated to disclose detailed financial data to the public. This structure is popular among small to medium-sized enterprises seeking a balance between limited liability protection and operational autonomy.
Documents Required for Private Limited Company Registration
PAN Card of shareholders and Directors. A valid passport is a must for foreign nationals.
Identity Proof of Shareholders and Directors, such as aadhar card and Voter ID / Passport / Driving License.
Director’s Address Proof of Shareholders and Directors, such as the latest Telephone Bill / Electricity Bill / Bank Account Statement.
Another requirement is the Passport size photograph of Shareholders and Directors. Here, it is important to ensure that this is the latest.
Business Address Proofs such as the latest Electricity Bill / Telephone Bill of the registered office address
NOC or No Objection Certificate to be obtained from the owner(s) of the registered office
The Rental Agreement must be provided if the company's registered office is in a rented office/commercial/other rented premises.
Foreign nationals or NRIs must apostille or notarise director documentation.
