Private Limited Company is most preferred & popular when it comes to setting up a new company in India. It can be registered with minimum 2 members & maximum with 200 members, out of which there should be at least minimum of 2 Directors. Normally, an individual can be both a director & a shareholder as well.
Additionally, a Private Limited Company is also prevalent to NRIs, Foreign Nationals & Foreign Corporate Entities as they are allowed to be Directors or Shareholders or both.
A Minimum paid-up capital of INR 100000 is required to start a Private Limited Company. However such requirement is not mandatory by the law but it is advisable to have at least such capital with them.
A Private Limited Company with the help of G K Legal Solutions can be registered within 10-12 Working days only, subject to client document submission & Government processing time.
Benefits of Private Limited Company:
The primary requirement of growing business is to have funding which in private limited company is possible because of ease of raising capital from an Angel Investors, Venture Capitalist or Private Equity Firms. This makes the scope of expansion in private limited more higher.
A private limited company is considered as a separate legal entity as the advantage & the liabilities of the company & that of directors are considered. As the advantages & liabilities cannot be treated as it is of directors or Vice-versa.
A Company being a separate legal entity is not affected by the departure or death of any member. It will continue its existence until it is legally dissolved.
In private limited company shareholders can easily transfer their shares to the existing shareholders or other specified group of individual, normally by signing & filing of Share Transfer Deed & handing over the share certificate by way of preferential allotments.
Documents required For Private Limited Company Registration:
- FROM ALL DIRECTORS & SHAREHOLDERS:
- Scanned Copy of Aadhaar Card
- Scanned Copy of PAN
- Scanned Copy of Latest Bank Statement/ Utility Bill (Electricity Bill /Telephone Bill)
- Scanned Copy of Rent Agreement
- Passport Size Photograph
- Additional proofs – Election Card / Passport / Driving License (If Required)
- FOR REGISTERED BUSINESS PREMISES:
- Scanned Copy of Rent Agreement (For Rented Premises)
- Scanned Copy of NOC
- Scanned Copy of Electricity Bill.