Private
Limited Company
Private Limited Company is the most popular corporate
entity that is registered extensively in India. Private limited companies
offers best cushion for start-ups to raise finance and launch innovative ideas
with a limited liability. It is governed by the MCA (Ministry of Corporate
Affairs) and regulated by the Companies Act, 2013 and the various Companies Rules.
v Why
Private Limited Company?
Before moving to procedures, let’s have a glance at why
company form of business is preferred medium of legal structure for
entrepreneurs.
ü Separate Legal Existence distinct
from shareholders(owners)
ü Limited liability to
investors.
ü Ease of availing credit from
Banks and financial institutions
ü More potential for flow of
investment
ü Potential for growth and
expansion
v Checklist
ü At least 2 shareholders are
required to incorporate a company. There can be a maximum of 200 shareholders.
ü A company must have minimum
2 directors and maximum 15 directors
ü One of the directors must be
a resident director (stay in India for at least 182 days)
ü Company Name must be unique;
it should not be similar or identical with name of existing company or
trademark
ü No need for minimum paid up
capital. However, authorised capital shall be minimum Rs.1,00,000/-
ü A company must have a
registered office in India. In case proposed registered office is rented, no
objection certificate is required from the Landlord.
v Documents
Required
Identity proof and address proof are necessary for all the founding
shareholders and directors. Besides, address proof of registered office is also
required. The following documents are accepted by MCA for incorporation process
§ In
case of directors & Shareholders
ü Scanned copy of PAN Card or
Passport (Foreign Nationals & NRIs)
ü Scanned copy of Voter’s
ID/Passport/Driver’s License
ü Scanned copy of the latest
bank statement/telephone or mobile bill/electricity or gas bill
ü Scanned passport-sized
photograph specimen signature (blank document with signature [directors only])
For the foreign nationals,
apostilled or notarized copy of the passport has to be submitted mandatorily.
All documents submitted should be valid. The residence proof documents like the
bank statement or the electricity bill must be less than 2 months.
§ Proof
of Registered Office
The following documents are
accepted as proof of registered office (can be commercial or rental building);
ü Scanned copy of the latest
bank statement/telephone or mobile bill/electricity or gas bill
ü Scanned copy of Notarized
rental agreement in English
ü Scanned copy of No-objection
certificate from the property owner
ü Scanned copy of sale
deed/property deed in English (in case of owned property)
v Expected
Delivery Time – 7to 21 Days |