Private Limited Company registration is the most common & popular form of a legal structure for all businesses in India formed under the eyes of Law and regulated by the Ministry of Corporate Affairs. A private limited company can have a minimum of two members and a maximum of fifty members.
A private limited company provides limited liability protection to its shareholders. In case of any unpredicted losses, statutory or legal liabilities, the shareholders of the company will not be held liable. Only the Directors of a private limited company are held responsible in most cases for various statutory charges.
It is a registered corporate structure that provides business a separate legal identity from its owners. Hence, providing key advantages like the ability to contract in its own name, and safeguard personal assets of the owners from business liabilities.
For Private Company registration in India, following requirements must be fulfilled:
1. Minimum 2 directors shall be appointed, out of which one must be a resident of India.
2. Minimum 2 shareholders are required for this registration. Here, an individual may become shareholder and director at the same time.
3. A place of business in India must be provided as a registered office address.
Once, the company is registered, it should follow below-mentioned requirements on priority:
1. The opening of the companys current account within 30 days after receiving the PAN card.
2. Appointment of a Statutory Auditor within 30 days from the date of incorporation.
3. Depositing paid-up capital as mentioned while registration
4. Filing on Commencement of Business within 180 days of incorporation