Private Limited Companies are the most widely used type of legal entity of corporates in India. They are in short and most popularly known as Pvt Ltd. The registration of such legal entities is governed by the Ministry of Corporate Affairs, Companies Act, 2013. They also have to follow and adhere to the laws of Companies Incorporation Rules, 2014.
To begin your own Private Limited Company you need a minimum of two directors and two shareholders. For being the director of the company it is essential for you to be a natural person, however, the shareholder can be a natural person or a corporate legal entity.
In case if any foreigner or any foreign corporate entity or NRIs wants to establish a company in India they can do it through Foreign Direct Investment which makes it very easy for the NRIs to invest in India and earn profits.
Know TheVarious Benefits of a Private Limited Company
- A Private Limited Company is a separate corporate legal entity, the company’s finances are separate from the owner’s finances.
- There are no personal liabilities to Limited company owners.
- The private limited companies can borrow money, raise funds and capital from the market without involving personal risk.
- They have a legal precedent to guide the various shareholders and the directors of the company.
- They have an unlimited life and their existence does not end after the death of the directors or shareholders.
- They are given certain relaxation on the taxes and they have to pay a little less corporation taxes.
- Easy transferability of the company can be done, by simply transferring the share to someone else.
What Are The Disadvantages of a Private Limited Company?
- It is a mandate for the directors and shareholders of such a company to hold annual meetings and observe specific formalities.
- The procedure for registration of a private limited company is more expensive in comparison to sole trader or partnership.
- Such companies have to pay annual fees and have periodic filing obligations and various audits are to be done compulsorily.
- The owners however, have less control over the company unlike sole trader so that no compliance issue can be raised.
We ensure you to help you with the best possible solutions at your end if you are looking for the private limited company registration with the help of experts. Dial our number or drop us an email so that we can reach you back as soon as possible.
What Is The Procedure for Company Registration?
- Acquiring Director Identification Number (DIN)-This is the first step and each and every director of the company must have the Director Identification Number. To get this you need to file a DIR-3 form which is available on the site of the Ministry of Corporate Affairs.
- Acquiring Digital Signature Certificate (DSC) – To ensure the authenticity and security of documents and data, the Information Act 2000, says it is compulsory for all the documents submitted electronically to have a valid digital signature. This DSC is issued by only those agencies which are appointed by Controller of Certification agencies.
- Name Approval- You now need to apply for name approval in RUN form with the MCA portal. Name should be unique.
- Incorporate the Company- The last and the major step in the procedure of company registration after name reservation is to incorporate the company.
For more details, contact Swarit Advisors anytime whenever you need the help of specialists. We give best solutions and hassle-free solutions to our customers so that they may approach us again if they need without any hesitation. Customer satisfaction is of utmost importance to us.
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