Private Limited Company : Documents Required for Registration
A private limited organization is an association that has at least two investors, and a limit of 200, with at least two chiefs. A private limited organization with one investor can welcome companions or relatives to join the association as the subsequent investor. Moreover, a private limited organization additionally has limited risk, where an investor’s obligation stretches out to the sum put by them in the portions of the organization. Allow us to see the reports needed for private limited organization enlistment.
Advantages of Private Limited Company
- There is a Limited danger to individual resources in Private Limited Company.
- Ltd. Co. is a Separate Legal Entity.
- In the Private Limited Company there would Limited Liability for individuals.
- Shares of a company limited by shares are transferable by a shareholder to any other person. The transfer is easy as compared to the transfer of interest in business run as a proprietary concern or a partnership
- An organization has ‘never-ending progression’, that is proceeded or continuous presence until it is lawfully broken down.
- For a private company, the earlier minimum number of the share capital was Rs. 1,00,000, but now there is no such minimum capital compulsion. Therefore there is no pressure of fund requirements.
- It is easy to fetch funding in a private limited company by transferring of shares.
Disadvantages of a Private Limited Company:
- One of the principle hindrances of a private restricted organization is that it confines the exchange capacity of offers by its articles.
- In a private limited company the number of members in any case cannot exceed 200.
- In stock exchange shares cannot be quoted.
Types of Director in Pvt. Ltd company
A managing director;
An Executive director (the whole-time director);
An Ordinary director;
A nominee director;
An Alternate director;
A Professional director.
Minimum Requirement for Private Limited Company:
- A minimum number of two Directors who are adults. Minimum two and maximum 200 members are allowed in a private limited company.
- One of the Directors of a private limited company has to be an Indian Citizen and Indian Resident.
- The other director(s) can be a Foreign National.
- It is also required to have two shareholders of a company.
- The shareholders can be natural persons or an artificial legal entity.
Requirements for Registering a Private Limited Company
Every business type has its own set of requirements before it is incorporated. The requirements for registering this are as stated below:
Members and directors: As mentioned above, to get itself legally registered, a private limited company must show a minimum number of two and a maximum number of 200 members. This is a statutory requirement as mandated by the Companies Act 2013.
The chiefs should meet the accompanying conditions:
- Every one of the Director should have a DIN for example chief recognizable proof number, which is given by the Ministry of Corporate Affairs
- One of the Director should be an occupant of India, which implies he/she ought to have remained in India for at least 182 days in the past schedule year
Name of the company: Choosing the name of the company is often a technical task. A private limited company is required to cover three aspects while deciding a name for it-self:
- Main name
- Activity to be carried out
- Mention of ‘Private Limited Company’ at the end.
Registered office address: After the company has been registered, the permanent address of its registered office must be filed with the registrar of the company. The registered office of the company is where the company’s main affairs are being conducted and where all the documents are placed.
Obtaining other documents: For electronic accommodation of archives, each organization should get a computerized signature statement that is utilized to confirm the validness of the records. in a company employing professionals (secretary, chartered accountant, cost accountant, etc.) for varied activities, certifications by these professionals is necessary.
Documents Required for Private Limited Company Registration
- Documents from Directors and Shareholders
- Identity Proof
- Permanent Account Number (PAN) Card
- Aadhar Card / Passport / Driving License / Voter Identity Card
- Telephone Bill / Mobile Bill
- Electricity Bill / Water Bill
- Bank Statement /Bank Passbook with latest transaction (Any one of the Document not older than 2 months)
- Passport size Photographs – 3 each
Every one of the Copies of records should be Self Attested by the candidate.
Phone Bill/Mobile Bill/Electricity Bill/Bank Account Statement should be for the name of candidate and should not be more than 2 months.
- Documents to be Signed by DIRECTORS
- Consent to Act as Director: Form DIR-2
- Details for DIN
- Declaration of DIN (If DIN is allotted already)
- Documents to be Signed by SHAREHOLDERS
- Application for Digital Signature Certificate (DSC)
- 2) Declaration by Subscribers & Director: INC-9
- Documents from Company / LLP / Trademark Owner, if any
- Board Resolution / Formal authorization for use of Name / Trademark
- Authorization for execution Documents from Company / LLP
Note:- These shall be signed by the concerned on their Letter head
Apart from these, there are other documents needed such as:
- Passport-size photographs
- Specimen signature on a blank document (for company directors)
- Memorandum of Association that explains all the basic information about the company to register it
- Articles of Associations that explains the rules, responsibilities, and objectives of the company
- Registration fee and stamp duty, to finally register with the state government (where the company is located) as an operational and fully functional business entity. The certificate of incorporation is used to apply for company PAN and TAN.