{"id":238,"date":"2021-05-20T17:12:46","date_gmt":"2021-05-20T11:42:46","guid":{"rendered":"https:\/\/total-sols.com\/blog\/?p=238"},"modified":"2021-06-09T17:44:20","modified_gmt":"2021-06-09T12:14:20","slug":"introduction-of-business-incorporation-cont-private-limited-registration","status":"publish","type":"post","link":"https:\/\/total-sols.com\/blog\/introduction-of-business-incorporation-cont-private-limited-registration\/","title":{"rendered":"INTRODUCTION TO BUSINESS INCORPORATION SERIES&#8230; 5) PRIVATE LIMITED COMPANY"},"content":{"rendered":"\n<p> The discussion is on Private Limited Company, which can be wholly owned Indian company or a wholly owned subsidiary of a foreign company or a joint venture between foreign and Indian company or a wholly owned foreign company. &nbsp;Private limited company should have a minimum of two directors. <br>.<\/p>\n\n\n\n<p><strong>Feature of Private Limited Company:<\/strong><br><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Private limited company to register with Ministry of Company Affairs\/ ROC (Registrar of Companies).<\/li><li>The company to incorporate itself has to have a name approval. &nbsp;If the name is available, the same shall be approved.<\/li><li>Artificial legal person. &nbsp;The private limited company is an artificial person in the eyes of law. &nbsp;That means that it is an independent person.<\/li><li>Separate legal entity. &nbsp;The private limited company is an artificial juridical body established under Companies Act by Directors and Shareholders. &nbsp;The company is an independent body where it can possess and buy properties, incur debts and spend.<\/li><li>Perpetual succession. &nbsp;The death, insanity, change in membership, bankruptcy etc will not impact the continuity to exist until legal takes the decision.<\/li><li>Limited liability. &nbsp;The liability of the shareholders are limited to the shares in the company. &nbsp;However, directors extending personal guarantee additionally will have unlimited liability.<\/li><li>Equity: &nbsp;The company can raise funds through equity, private equity, stock exchange etc.<\/li><li>Restriction on share transferability. &nbsp;Transferability of shares is unchallenging. Hence entrepreneurs opt to start as a private limited company. &nbsp;The shares can be transferred within India or outside but governed by shareholders\u2019 agreement and article of association.<\/li><li>Owning assets: &nbsp;The company can own and transfer any kind of assets.<\/li><\/ul>\n\n\n\n<p><strong>Details and procedure of private company registration:  <\/strong><br><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Minimum of two promoters required<\/li><li>Putting together the objects of the company.<\/li><li>Drafting Memorandum &amp; Article of Association<\/li><li>Apply for name clearance.<\/li><li>Procure a DSC (digital signature certificate)&nbsp;<\/li><li>PAN card of the promoters.<\/li><li>Aadhar card of the promoters.<\/li><li>Address proof of the promoters.<\/li><li>Rental agreement in the name of the Company.<\/li><li>Electricity bill of the current month of the rented premise <\/li><li>Proposed authorised capital. &nbsp;Number of shares and face value of each share.<\/li><li>Proposed paid-up capital. &nbsp;Number of shares allotted to each promoter for shareholders.&nbsp;<\/li><\/ul>\n\n\n\n<p><br><\/p>\n\n\n\n<p><strong>Procedure for company registration:<\/strong><br>\u2022 Apply for name clearance.<br>\u2022 Apply for company registration with draft MOA (Memorandum of Association) and AOA (Articles of Association).<br>\u2022 Pay the prescribed fees.<br>\u2022 If no objection, ROC will allot incorporation. &nbsp;If any objections, we need to rectify it for completion of the process.<br><strong>Other Features:<\/strong><br>\u2022 Private limited company can be converted to public limited company, OPC, LLP<br>\u2022 Private limited company should have 2 directors and maximum 15 directors. &nbsp;The shareholders are restricted to 200 in total for a pvt ltd company.<\/p>\n\n\n\n<p><strong>Conclusions:<\/strong> &nbsp;So, a private limited company is the most ideal form of business registration as it allows for maximum growth, helps joint ventures, subsidiaries, etc.<\/p>\n\n\n\n<p>Stay tuned for Other forms of Private Limited&nbsp; Companies, which will be a Public Limited Company. <\/p>\n\n\n\n<p><strong>Share &amp; Review us at : <\/strong><\/p>\n\n\n\n<p><strong>Facebook <\/strong>:&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.facebook.com\/totalsols\" target=\"_blank\">https:\/\/www.facebook.com\/totalsols<\/a><br><strong>Linkedin:<\/strong><a rel=\"noreferrer noopener\" href=\"https:\/\/www.linkedin.com\/in\/a-subramani\/\" target=\"_blank\">https:\/\/www.linkedin.com\/in\/a-subramani\/<\/a><br><strong>Instagram:&nbsp;<\/strong><a href=\"https:\/\/bit.ly\/3fpFzcp\">https:\/\/instagram.com\/totalsols123?igshid=vhhhy4ozhh2q<\/a><br><strong>Youtube Channels&nbsp;:&nbsp;<\/strong><a rel=\"noreferrer noopener\" href=\"https:\/\/rb.gy\/q43drq\" target=\"_blank\">https:\/\/rb.gy\/q43drq<\/a>&nbsp; \/&nbsp;&nbsp; <a href=\"https:\/\/bit.ly\/3ol827x\">https:\/\/bit.ly\/3ol827x<\/a><\/p>\n\n\n<p><!--EndFragment--><\/p>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>The discussion is on Private Limited Company, which can be wholly owned Indian company or a wholly owned subsidiary of a foreign company or a joint venture between foreign and Indian company or a wholly owned foreign company. &nbsp;Private limited company should have a minimum of two directors. . Feature of Private Limited Company: Private [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,62],"tags":[74,72,73],"class_list":["post-238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounts","category-incorporation","tag-company-registration","tag-private-limited-company-registration","tag-pvt-ltd-regn"],"_links":{"self":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/comments?post=238"}],"version-history":[{"count":6,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/238\/revisions"}],"predecessor-version":[{"id":251,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/238\/revisions\/251"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media\/209"}],"wp:attachment":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media?parent=238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/categories?post=238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/tags?post=238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}