PRIVATE LIMITED COMPANY

A PRIVATE COMPANY CAN BE INCORPORATED BY FOLLOWING THE PROVISIONS AND REGULATIONS STATED UNDER THE COMPANY’S ACT 2013. THE MINIMUM NUMBER OF PERSONS REQUIRED FOR THE INCORPORATION IS 3. WHEREAS THE MAXIMUM LIMIT OF THE NUMBER OF PERSONS IS 50. THERE ARE MANY BENEFITS THAT ARE ACHIEVED BY A PRIVATE LIMITED COMPANY. IT ENJOYS A GREATER STABILITY, LEGAL IDENTITY, IT IS FLEXIBLE AND A GREATER COMBINATION OF CAPITAL. THIS IS SUPPORTED WITH THE DIVERSIFIED AND DIFFERENT ABILITIES OF CAPITAL ACCUMULATION. THE PRIVATE COMPANY CAN BE EASILY IDENTIFIED BY JUST LOOKING AT THE NAME, NUMBER OF MEMBERS IT INCORPORATES, THE MANAGEMENTS, DIRECTORS ETC. THE NUMBER OF DIRECTORS WHO ARE TO INCORPORATE MUST BE MENTIONED IN ARTICLES OF ASSOCIATION. HOWEVER, THE PRIVATE COMPANIES WHO ENJOY ITS DISTINGUISHED LEGAL ENTITY AND THE PRIVATE COMPANIES WHICH ARE THE SUBSIDIARY OF THE OTHER PUBLIC COMPANIES IS DIFFERENTIATED IN COMPANY’S ACT.

MINIMUM REQUIREMENT

• MINIMUM OF TWO MEMBERS IS REQUIRED.
• THE MINIMUM CAPITAL REQUIRED TO START THE PRIVATE LIMITED IS RS. 100,000
• DIN OF TWO MEMBERS./LI>
• DIGITAL SIGNATURE FOR ALL DIRECTOR
• CONSENT EITHER FROM THE SUBSCRIBER OR DIRECTOR
• ADDRESS PROOF OF THE REGISTERED ADDRESS
• NOC WHICH WILL BE PROVIDED BY THE OWNER OF THE PROPERTY OR PREMISES
• MINIMUM OF DIRECTOR MUST BE RESIDENT OF INDIA

DOCUMENT REQUIREMENT

• TWO COLOUR PHOTOGRAPHS OF ALL THE MEMBERS
• PAN CARD OF ALL THE ASSOCIATES
• ADDRESS PROOF OF ALL
• IF THE PREMISES IS ON RENT OR LEASE, THE RESPECTIVE DOCUMENTS NEEDS TO BE PROVIDED
• SIGNATURE ON DSC FORM
• SIGNATURE ON AFFIDAVIT FOR THE DIN
• SIGNATURE ON CONSENT FORM
• SIGNATURE ON SUBSCRIBER SHEET

ADVANTAGE OF PRIVATE LIMITED COMPANY

SEPARATE LEGAL ENTITY
A COMPANY IS A LEGAL ENTITY AND A JURISTIC PERSON ESTABLISHED UNDER THE ACT. THEREFORE A COMPANY FORM OF ORGANIZATION HAS WIDE LEGAL CAPACITY AND CAN OWN PROPERTY AND ALSO INCUR DEBTS. THE MEMBERS (SHAREHOLDERS/DIRECTORS) OF A COMPANY HAVE NO LIABILITY TO THE CREDITORS OF A COMPANY FOR SUCH DEBTS.
UNINTERRUPTED EXISTENCE
A COMPANY HAS ‘PERPETUAL SUCCESSION’, THAT IS CONTINUED OR 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 BUT CONTINUES TO BE IN EXISTENCE IRRESPECTIVE OF THE CHANGES IN MEMBERSHIP.
BORROWING CAPACITY
A COMPANY ENJOYS BETTER AVENUES FOR BORROWING OF FUNDS. IT CAN ISSUE DEBENTURES, SECURED AS WELL AS UNSECURED AND CAN ALSO ACCEPT DEPOSITS FROM THE PUBLIC, ETC. EVEN BANKING AND FINANCIAL INSTITUTIONS PREFER TO RENDER LARGE FINANCIAL ASSISTANCE TO A COMPANY RATHER THAN PARTNERSHIP FIRMS OR PROPRIETARY CONCERNS.
EASY TRANSFERABILITY
SHARES OF A COMPANY LIMITED BY SHARES ARE TRANSFERABLE BY A SHAREHOLDER TO ANY OTHER PERSON. FILING AND SIGNING A SHARE TRANSFER FORM AND HANDING OVER THE BUYER OF THE SHARES ALONG WITH SHARE CERTIFICATE CAN EASILY TRANSFER SHARES.
OWNING PROPERTY
A COMPANY BEING A JURISTIC PERSON, CAN ACQUIRE, OWN, ENJOY AND ALIENATE, PROPERTY IN ITS OWN NAME. NO SHAREHOLDER CAN MAKE ANY CLAIM UPON THE PROPERTY OF THE COMPANY SO LONG AS THE COMPANY IS A GOING CONCERN.
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.

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