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Private Limited Company
A Private Limited Company is a type of company that offers Limited Liability or legal Protection for its shareholder Private Limited Company which can have a minimum of two members and can go as far as to two hundred members, it must have minimum of two directors and a maximum of fifteen directors.
Private Limited Company lies somewhere in between a partnership firm and a widely owned public company, as it have all the advantages namely flexibility, borrowing capacity, greater capital combination of different and diversified abilities, etc.
There are numerous benefits:
- A private limited company is considered to be a separate legal entity. It has its own identity and very much recognized as a separate company under the law.
- Private Limited Company has this feature of limited financial liability of all the shareholders. The liabilities are limited to their shares only. This feature protects the personal assets and income of shareholders at times of any financial crisis faced by the company. Also, it gives the company more liberty of taking risks.
- Private Limited companies are not affected by the status of their own when it comes to their existence. Death or inability to continue if the owner does not hinder the proceedings of the company.
- They pay tax on taxable profits and are exempted from higher personal income tax rates.
- 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.
Who can be a member in Private Limited Company?
Any individual/organization can become the member of the private limited company including foreigners/NRI.
Is it necessary to have 2 directors for Private Limited Company Registration?
Yes, you need a minimum of two directors for a private limited company. If you are a sole owner, you can register as a One Person Company. You can get your One Person Company registered at BDS Legal.
Can a Company be registered without any object?
No, as per Indian laws a Company must have a lawful object at the time of Incorporation. We at BDS Legal will help you draft the object for your Company.
Can registered office be situated outside India?
No, it must be situated in India only.
Can a Foreign National or an NRI be a Director in a Private Limited Company?
Yes, a Foreign National or an NRI can be a Director of a Private Limited Company in India after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident Indian for smooth functioning of the Company.
What is MOA and AOA? What is the procedure in this regard?
MOA states the main and the subsidiary objectives of the proposed company. The rules and procedures for the conduct of the proposed company, authorized share capital, names of its first permanent directors are mentioned in the AOA. Our team of professionals at BDS Legal will help drafting of MOA & AOA. The amount paid for the stamp duty depends on the amount of authorized share capital.
From when can the newly formed company start its business operations?
A private company can start its business after getting the certificate of incorporation, unlike a public company it do not require any other approvals for starting the business.
Do you have to be present in person to incorporate a Private Limited Company?
No, you will not have to be present in India for registering of a Private Limited Company.
How long is the registration of the Company valid for?
Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. BDS Legal also helps in post registration compliance of the private limited company.
Still have confusion?
Don’t worry!! Our expert will help you to choose best suitable plan for you. Get in touch with our team to get all your queries resolved. Write us on email@example.com or call us @ +91 022 6267 7210 / 6267 7211 / 6267 7212