Private Limited Company Registration in India

Private Limited Company

Private Limited Company in its essence is a company set up by an Entrepreneur without any intervention from government officials. Though, certain ground rules are to be followed. Certain requirements and eligibility criteria have to be fulfilled before setting up a private limited company legally. Choosing a location, manufacturing and starting selling products is not how you incorporate a company. License and other permissions are required. Certain legal documents are to be filed and many rules have to be followed. It can be as small as selecting a name to as big as getting a certification and selling products globally. Then there are certain tax rules related to each form of company. Private Limited Companies have their own procedure when it comes to tax filing or company registration. Discussed below is a simple way in which you can understand a private limited company.

Private Limited Company Registration

A private company is formed only when there is a minimum of two directors, two shareholders, and two members. A maximum of up to fifteen directors, two hundred members, and two hundred shareholders are allowed in a private limited company. This is one of the most common as well as reliable forms of business. They are considered to be a separate legal entity and hence many things can be done under company's name (including bank accounts and suing other entities). One feature of a private limited company is that it gives limited liabilities to all its shareholders. This feature allows more safety to the personal income and assets of the shareholders.

Also, one person can act as a director, a shareholder as well as a member at the very same time. A private limited company can also continue to work even if the director dies or is incapable of continuing his work. Now, there are types of private limited companies, namely, Company limited by shares, the company limited by guarantee and unlimited companies.

Shareholders cannot sell their shares without offering them to fellow shareholders. It's generally seen as a disadvantage of a private limited company. Proper financial statements are to be maintained. Proper accounting and auditing are also required.

The private limited company in order to get registered legally has to follow a proper laid out the set of rules and regulations by MCA or Ministry Of Corporate Affairs. We, at LegalRaasta, can help you with private limited company registration in India easily and quickly.