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Private Limited Company

Private Limited Companies are those types of companies where minimum number of members is two and maximum number is fifty. A private limited company has the limited liability of members but at the same time it has many characteristics as those of a partnership firm. A private limited company has all the advantages of partnership namely flexibility, greater capital combination of different and diversified abilities, etc., and at the same time it has advantages of limited liability, greater stability and legal entity. In this sense, a private limited company stands between partnership and widely owned public company. Identifying marks of a private limited company are name, number of members, shares, formation, management, directors and meetings, etc., The maximum number of directors shall have to be mentioned in the Articles of Association. In the grand of privileges and exemptions, the Companies Act has drawn a distinction between an independent private company and other private company which is a subsidiary to the other public company.

The procedure for incorporating a company in India is as under:-

-Obtaining Director Identification Number (DIN)
-Obtaining Digital Signature Certificates (DSC) for each Director/Promoter
-Making application to ROC
-Applying for name availability of proposed company to ROC (through filling Form 1A)
-Upon name approval, completing the formalities for company incorporation within proposed 3 months

Important points to consider in ‘Company Formation in India’ –
-Any person Indian/Foreigner can be Director in Indian Company
-Minimum capital for Private company is INR 1,00,000
-Any Individual/Company (Indian/Foreigner) can be Shareholder in Indian Company (however foreigner needs to comply with foreign exchange laws as defined in India)
-Minimum 4 meetings of Board of Directors and 1 shareholders meeting to be held in one year
-Paying of registration fee and stamp duty depends upon authorized capital of proposed Company

Private Limited Company Registration

Private Limited Companies are those types of companies where minimum number of members is two and maximum number is fifty. A private limited company has the limited liability of members but at the same time it has many characteristics as those of a partnership firm. A private limited company has all the advantages of partnership namely flexibility, greater capital combination of different and diversified abilities, etc., and at the same time it has advantages of limited liability, greater stability and legal entity. In this sense, a private limited company stands between partnership and widely owned public company. Identifying marks of a private limited company are name, number of members, shares, formation, management, directors and meetings, etc., The maximum number of directors shall have to be mentioned in the Articles of Association. In the grand of privileges and exemptions, the Companies Act has drawn a distinction between an independent private company and other private company which is a subsidiary to the other public company.
The procedure for incorporating a company in India is as under:-
-Obtaining Director Identification Number (DIN)
-Obtaining Digital Signature Certificates (DSC) for each Director/Promoter
-Making application to ROC
-Applying for name availability of proposed company to ROC (through filling Form 1A)
-Upon name approval, completing the formalities for company incorporation within proposed 3 months

Important points to consider in ‘Company Formation in India’ –
-Any person Indian/Foreigner can be Director in Indian Company
-Minimum capital for Private company is INR 1,00,000
-Any Individual/Company (Indian/Foreigner) can be Shareholder in Indian Company (however foreigner needs to comply with foreign exchange laws as defined in India)
-Minimum 4 meetings of Board of Directors and 1 shareholders meeting to be held in one year
-Paying of registration fee and stamp duty depends upon authorized capital of proposed Company

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