All about Private Limited Company

 Register a Private limited Company on my Home Address ?
Yes, you can register your company at your residential address. there is no issue, you need only the utility bill copy of the same.

 Can i Register my family members in the company, if have no partner ?
Yeah, it's  a good idea to register on your family member on the Paper. even on later stage you can change this or transfer the shares of the directors.

How many days takes to register a private limited company ?
Its take minimum 10 to 15 days avg. to register a private limited company in India.

 How much cost for the private limited company ?
Its cost nearby 14999/- INR except in some state like Punjab, Kerala and MP State due to Stamp Duty.

What is meant by the authorised capital in case of private limited company i.e is 1 lakh rupees ?
It's a just a maximum share value which you can issued in your company so its not mean that you have to invest the 1 lakh rupees. you can start your own private limited company with any amount of capital.

GST Registration is required for private limited company ?
GST Registration is optional till the 20 lakh rupees turnover and for north east state 10 lakh rupees turnover. it's a complete separate registration apart from private limited company registration.

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.

Separate Legal Entity

Private Limited Company is a legal entity and a juristic person established under the Companies Act. Hence, a company has a range of legal capacities including opening of a bank account, hiring of employees, taking on equity or obtaining licenses and more as an independent corporate entity. The members (Shareholders/Directors) of a company have no personal liability to the creditors of a company for company's debts.

Uninterrupted Existence

Private Limited Company has 'perpetual succession', meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.

Borrowing Capacity

Private Limited Companies can raise equity funds in India. Companies can also issue equity shares, preference shares, debentures and accept deposits with RBI permission. Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns.

Easy Transferability

Ownership of a business can be easily transferred in a company by transferring shares. The signing, filing and transfer of share transfer form and share certificates is sufficient to transfer ownership of a company. In a private limited company, the consent of other shareholders maybe required to effect share transfers.

Owning Property

Private Limited Company being an artificial person, can acquire, own, enjoy and alienate, property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company - as long as the company is a going concern.

Identity and Address Proof

Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.

Registered Office Proof

All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.

 Important other thing that i (sandip) think you will be dealing with while registering as private limited company in india are as given below >

DSC, DIN NAME APPROVAL, INCORPORATION FEE, PAN, TAN, SHARE CERTIFICATES, COMPANY KIT, AUTHORISED SHARE CAPITAL OF RS 10LAC, TRADEMARK FILING, MOA, AOA.

ANOTHER WAYS TO MAKE YOU UNDERSTAND : -

Private Limited Company registration is the most popular legal structure option for businesses in India. Private limited company can have a minimum of 2 members (shareholders) and a maximum of two hundred members. It can be incorporated with minimum 2 directors. The directors/shareholders of a private limited company have limited liability to creditors. In a case of default, banks / creditors can only sell company’s assets but not personal assets of directors.

Start-ups and growing companies prefer private limited company as it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent.

Advantages of Registering Private Limited Company in India:

MINIMUM REQUIREMENT OF SHAREHOLDERS AND MEMBERS: ONLY TWO MEMBERS AND TWO SHAREHOLDERS ARE REQUIRED TO INCORPORATE A PRIVATE LIMITED COMPANY. THIS GIVES MANY ENTREPRENEURS AN OPPORTUNITY TO SET UP THEIR OWN COMPANY.

·          LIMITED LIABILITY:  LIMITED LIABILITY MEANS THE STATUS OF BEING LEGALLY RESPONSIBLE ONLY TO A LIMITED AMOUNT FOR DEBTS OF A COMPANY. UNLIKE PROPRIETORSHIPS AND PARTNERSHIPS, IN A LIMITED LIABILITY COMPANY THE LIABILITY OF THE MEMBERS IN RESPECT OF THE COMPANY’S DEBTS IS LIMITED. IN OTHER WORDS, THE LIABILITY OF THE MEMBERS OF A COMPANY IS LIMITED ONLY TO THE EXTENT OF THE FACE VALUE OF SHARES TAKEN UP BY THEM. THEREFORE, WHERE A COMPANY IS LIMITED BY SHARES, THE LIABILITY OF THE MEMBERS ON A WINDING-UP IS LIMITED TO THE AMOUNT UNPAID ON THEIR SHARES.

·          FREE & EASY TRANSFERABILITY OF SHARES OR CHANGE IN OWNERSHIP: 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. FILING AND SIGNING A SHARE TRANSFER FORM AND HANDING OVER THE BUYER OF THE SHARES ALONG WITH SHARE CERTIFICATE CAN EASILY TRANSFER SHARES.

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·          NO MINIMUM CAPITAL CONTRIBUTION: NO MINIMUM CAPITAL REQUIREMENT. YOU CAN START IT WITH ANY AMOUNT NOT LESS RE.1 PER SHAREHOLDER.

·          EASE OF RAISING FUNDS: SHAREHOLDERS ALLOWED ARE UP TO TWO HUNDRED AND ANOTHER TWO HUNDRED MEMBERS ARE ALLOWED, THIS MANY NUMBERS AND THE REPUTATION OF THE PRIVATE LIMITED COMPANY MAKES IT EASIER TO RAISE CAPITAL FUNDS IN COMPARISON TO OTHER FORMS OF COMPANIES. THEREFORE, WE CAN SAY THE SCOPE OF EXPANSION IS GREATER WHEN A PRIVATE LIMITED COMPANY IS INCORPORATED. TAKING DEBTS FROM BANKS AND OTHER FINANCIAL VENTURES ARE QUITE EASY TOO. RAISING MONEY AS A SMALL BUSINESS AND A SOLE PROPRIETORSHIP OR PARTNERSHIP CAN BE DIFFICULT. BUT AS PER COMPANIES ACT 2013 A COMPANY CAN SELL SHARES TO THE PUBLIC OR CAN ACCEPT DEPOSITS FROM PUBLIC AND CAN THEREFORE RAISE MONEY EASIER THAN OTHER BUSINESS STRUCTURE TYPES. THE MODES OF FINANCING BUSINESS CARRIED ON BY COMPANY ARE NUMEROUS. MOREOVER, SINCE THE COMPANIES ARE GOVERNED BY PARTICULAR LAW AND HAVE TO COMPLY WITH STRINGENT DISCLOSURE NORMS, THEREFORE THEY ENJOY GOOD CREDIT WORTHINESS WITH VARIOUS FINANCIAL INSTITUTIONS.

·          TAX ADVANTAGES: THEY PAY TAX ON TAXABLE PROFITS AND ARE EXEMPTED FROM HIGHER PERSONAL INCOME TAX RATES.

O    FLEXIBLE RELATIONS: A PERSON CAN ACT AS A SHAREHOLDER, A DIRECTOR AND AN EMPLOYEE AT THE SAME TIME WHEN THE PRIVATE LIMITED COMPANY IS TAKEN INTO CONSIDERATION. THEY ARE CONSIDERED RELIABLE TOO.

 IDERATION. THEY ARE CONSIDERED RELIABLE TOO.