A Private limited company is a company which is privately held by the small group of people. It is registered for pre-defined objects and owned by a group of members called shareholders. The liability of the shareholders of a Private Limited Company is limited to the amount of shares respectively held by them. Shares of Private Limited Company cannot be publically traded.
The business entity gets recognized as a Company through its registration under Companies Act, 2013 in India. The governing body is Ministry of Corporate Affairs, widely known as MCA.
The average time taken to complete a registration process is about 20-25 working days, subject to government processing time and client document submission.
The requirements for private limited company registration are:
Members – A minimum number of two and a maximum number of 200 members or shareholders are required as per the Companies Act, 2013 before registration of the company.
Directors – A minimum number of two directors is required for registering the private limited company. Each of the directors should have DIN i.e. Director Identification Number which is given by the ministry of corporate affairs. One of the directors must be a resident of India which means he/she should have stayed in India for not less than 182 days in a previous calendar year.
Name – It is one of the major components of a private limited company. The name of the company contains three parts i.e. the name, the activity, and private limited company. It is necessary for all private companies to use the word private limited company at the end of its company name.
Registered office address – While going for the registration of the company, the owner should provide the temporary address of the company until it does not get register. However when the company has been registered then the permanent address of its registered office should be suited with the registrar of the company.
Obtaining a Digital Signature Certificate – In today’s modern world everything is done online. All documents are submitted electronically and for that, every company must obtain a digital signature certificate which is used to verify the authenticity of the documents. A digital signature is obtained by all the directors which are marked on all the documents by every director.
Professional Certification – In a company there are many professionals which have required for many purposes. For incorporating a private limited company certification by these professionals are necessary. Various professionals such as company secretary, chartered accountant, cost accountant, etc are required to make their certification at the time of company incorporation.
