A private limited company can be incorporated with minimum two members, and maximum number of members that may join in is 200 per the Companies Act 2013. Two Directors are also required, however the members and Directors may be common persons as well. Maximum number of Director that can join a company is 15. With a perpetual existence and limited liability, it also benefits the owners with least tax rates applicable. As the business form is globally recognized and accepted, to promote more, the Government has eased the requirement of minimum paid up capital for Private Limited Company.
The business form is transparent in order that its annual accounts are available with Ministry of Corporate Affairs and anyone who wishes to see the documents can simply pay some fee and get the documents.
A Private company enjoys the ownership within group and thus huge protection from unwanted transfer of shares.
Benefits of Private Limited Companies:
- Limited Liability
- Legal entity benefit
- Easy Credit availability
- Perpetual existence
- Easy control
- More trusted
Checklist of documents required for registration of a Private Limited Company:
- ID and address proofs for Directors (min. 2) and shareholders (min. 2), Directors and shareholders can be common set of persons as well.
- Address proof for registered office address
- PAN card of Directors
- Utility bill of all directors, not older than 2 months
- NOC from owner of the registered office address
- MOA and AOA
- DSC of the Directors
Must know points before incorporation:
- An Indian person must have a PAN before becoming a Director in the company
- Company can be established only with two persons being Directors and shareholders
- One of the Directors must reside in India for at least 182 days in a calendar year
- Company can be established with as low as Rs. 2/- as share capital
- Maximum number of members in a Private Limited company can be 200
- Along with registration of company, PAN TAN and PF is also registered