Choose Right Business Legal Entity
Private Limited Company is a company which has a minimum of two members and a maximum of two hundred members and that offers limited liability or legal protection for its shareholders.A private limited company lies between a partnership and widely owned public company. A private limited company is identified by the company name, number of members, formation, directors, meetings, shares, etc.Private Limited company is "limited by shares" i.e. there are shareholders associated with the company and the theoretical value of the shares & any paid in return for the issue of shares by the corporation is limited to the capital which is initially invested.
There is a minimum of two shareholders required to start a Private Limited Company and the number can extend maximum from fifty to two hundred beyond which is not permitted.
A minimum of two directors are required to establish a private limited company and the maximum amount cannot exceed beyond fifteen.
The minimum authorized capital to start should be Rs. 100,000(US $2250 approx) and it can be increased to any amount(no upper limit). This money is deposited in your company bank account at your disposal.
For the proper execution of the idea choosing the right form of business is important and for start-ups Private Limited is the best option for the following reasons:
-Number of people required are low
-Funding requirements can be fulfilled with the help of shareholders and financial bodies
-Limited liability of the members
-Growth of Business can be done by converting a Private Limited to a Public Limited but a LLP cannot be converted to a Private Limited hence it restricts the growth
-Even though Private Limited Company is expensive but to execute the Big idea into a successful long term business Private Limited Company is the best choice for start-ups
With New form INC 29 the total time to register a Private Limited company is 10-20 working days.
Yes, the company incorporation process is online. You can email / upload us the required documents.
Yes, an NRI or Foreign National can be a Director in a Private Limited Company after obtaining Director Identification Number. However, atleast, one Director on the Board of Directors must be a Resident India.
The documents requirements are as follows
-ID proof- Any one (Voter ID / Aadhar Card / Driving License / Passport)
-Address Proof- Any one (Electricity Bill / Telephone Bill / Mobile Bill / Bank Statement)
Yes, a salaried person become the director in private limited company, there are no legal bondages in this, but you have to go through with your employment agreement if it contains any restrictions on doing so.
Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.
No You can open a company to your residential address there is no requirement to have a commercial place to open up a company
-For Registered Office Address
-Rent agreement along with latest rent receipt (in case the premises are rented)
-House tax receipts (in case premises are owned)
-NOC from the Owner (Format will be shared once your company name approved)
No, LLP cannot be converted to a Private Limited Company as it is not permissible by the government of India. Both the LLP Act, 2008 and the Companies Act,2013 are silent about the matter and haven't done any amendments on the same. However, if you want to expand your business you can register a Private Limited Company with INC-29 which has simplified the process of registration.
First ensure that company name is not similar to any other Private Limited,OPC, LLP or Public limited company. Also, do check If your first is not a registered trademark taken by anybody under the IP Act.
Also, make sure the name is not too generic to be accepted by the ROC land also, try not to use abbreviations, adjectives.
While choosing the name make sure that name should contain the objective of the business like if the objective is I then word is Technology, Technosoft, IT consultancy.