A private limited company is a type of business entity commonly used for small and medium-sized businesses in India and many other countries. Here are some key characteristics:
Ownership and Shares:
- Privately held: Shares are not publicly traded on stock exchanges. They are owned by a limited number of shareholders, typically founders, family members, or investors.
- Limited Liability: Shareholders’ liability is limited to the amount they invested in the company. Their personal assets are protected if the company incurs debts or goes bankrupt.
Structure and Management:
- Separate legal entity: The company has a distinct legal existence from its owners and operates independently.
- Directors: Manage the company’s operations and are responsible for making key decisions.
- Shareholders: Own shares in the company and are entitled to vote on certain matters, such as electing directors and approving major financial decisions.
Compliance and Regulations:
- Subject to specific regulations and reporting requirements outlined by the government or relevant authorities.
- Requires filing annual returns and maintaining financial records.
Benefits of a Private Limited Company:
- Flexibility: Offers greater flexibility in terms of ownership structure and decision-making compared to publicly traded companies.
- Limited liability: Protects personal assets of shareholders.
- Tax advantages: May benefit from certain tax exemptions or deductions.
Considerations:
- Raising capital: Limited ability to raise large amounts of capital through public offerings.
- Transferring shares: Selling shares can be more complex and restricted compared to publicly traded companies.
- Compliance: Requires adhering to stricter regulations and reporting requirements.
Additional points:
- In India, a minimum of two directors and two shareholders are required to form a private limited company.
- The company name should comply with specific regulations regarding usage of certain words and phrases.
- The incorporation process involves filing documents with the Ministry of Corporate Affairs (MCA) and obtaining necessary licenses.
DOCUMENTS REQUIRED
For Company
For Directors
*Note1: All Documents Should Be Self Attested and Clear Scanned Copy. Please Keep Original Documents With you For Verification.
FAQ's
(Sole proprietorship, partnership, limited liability company (LLC), corporation, etc.) This depends on factors like liability, ownership structure, tax implications, and funding needs. Consult Company Mitra for tailored advice.
These vary by location and business type. Research your local regulations or consult a lawyer specializing in business formation.
Costs vary depending on complexity, location, chosen services, and filing fees. Research average costs and consider consulting a professional to avoid hidden fees
While not always mandatory, a lawyer can ensure legal compliance, navigate complex processes, and handle potential issues efficiently.
Required documents vary by location and company type. Typical documents include articles of incorporation, business licenses, and operating agreements.
Timelines vary depending on complexity, chosen services, and government processing times. Research average timelines and factor in potential delays.
Maintaining legal compliance, filing annual reports, paying taxes, and holding regular meetings are crucial ongoing responsibilities.
Pricing Plan
BASIC
- Effortless name search
- PAN & TAN no of Company
- Certificate of Incorporation
- EPF No of Company
- Memorandum of Association (MOA )
- Article of Association (AOA)
- DIN & DSC of Two Director
- Board resolution for Bank Account opening
- Form INC-20A Filing
STANDARD
- Effortless name search
- PAN & TAN no of Company
- Certificate of Incorporation
- EPF No of Company
- Memorandum of Association (MOA )
- Article of Association (AOA)
- DIN & DSC of Two Director
- Board resolution for Bank Account opening
- Form INC-20A Filing
- MSME registration
- Billing Software for 3 months
- Three month Free compliances
