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Private Limited Company,How to Start? Requirements,Registration Details

Updated On : 05-Dec-2024

Private Limited Company - Know how to open Private Limited Company

Human beings have always been able to make their existence due to their skills and understanding, even today they are engaged in improving their needs and skills and making their career due to them, today their identity, existence and financially strong. In making any business by company has become a very good option, today private limited company is also playing an important role in this race.

Today we will discuss about the information related to all private limited company.

What is the meaning of Private Limited

Meaning of private in private limited = Meaning of private limited = In extent 

That is, working privately by staying within a limit or here it is being said in the sense of private limited business.

What is Private Limited Company

Private limited company is a privately owned company, which runs the business by the company privately, these companies are under the legal rule, and work on certain rules and assets.

These companies have different legal stability.

These companies can have a minimum of 2 directors and a maximum of 200 employees.

Whichever company has such characters, it comes under a private limited company.

What are the rules of private limited company

There are certain rules of any private limited company, following which these companies work.

The main rules for a private limited company under the Companies Act 2013 are-

Director

There should be a minimum of 2 directors for a private limited company, and one of these two directors must be a citizen of India.

Auditor appointment

At least one CA must be appointed for a private limited company, which is necessary under the rules of the private limited company.

Capital or cost

Only the Ministry of Corporate Affairs has the right to decide the capital of a private limited company, in which the minimum share capital of the paid up has to be 1 lakh.

Name of the company

The name of any private limited company is unique, lawful (ie, no such word is used which is not legal), natural (used to do the work it is used to do), with the use of private limited.

Location

It is necessary for any private limited company to have a place or location, where it has an authentic address, and documents can be exchanged through that place.

This location can be on rent, lease, or own, it is necessary for a private limited company to have documents for valid proof of this place.

Documentation

It is very important for any private limited company to have the necessary documents.

There are mainly two types of documentation required for this company-

Company profile is there under MoA.

Under AoA, the company's internal rules, assets are told.

Limits

It is necessary for a private limited company to have at least 2 directors.

For Private Limited Company maximum 200 employees can be kept.

Prohibition

Shares in a private limited company cannot be issued to the public.

Key managerial personal 

If your paid up share capital is 5 crores or above, then the company has to make about 6 appointments immediately.

These main appointments can be-

This is the main appointment.

What is the difference between Public Limited Company and Private Limited Company

public limited company

private Limited company

These main differences differentiate these two companies from each other.

How to open a private limited company

To open a private limited company, the company can be opened according to their rules.

Main Steps to Open a Private Limited Company-

Determining the Right Authentic Location for a Private Limited Company

(The location needs to be determined, as the address you will be connecting with the public, and will be able to contact, dispatch letters, is a must to register for a company with the Ministry of Corporate Affairs).

Selecting two directors for the company

(In which one is Indian, and the director has his own Director Identification Number, which is given by the Ministry of Corporate Affairs).

Choosing a company name

(The name should be such that it is unique, under the law, and shows your work, such as main name, activity name, private limited should be attached to it), about 6 names have to be sent in the name, out of which one of the sections which does not already exist and is under law).

Getting a Digital Signature Certificate to run the company

(Digital Signature Certificate is made by the Ministry of Corporate Affairs to show the recognition of the company and work digitally, it is a digital proof of identity.)

Documents required for a private limited company

Pay the registration fees which is necessary for private limited company.

It costs about 15000 to get all these work done, which is necessary in opening a private limited company.

Preparation of MoA and AoA

(Profile of the company and the work of the company, there is an objective detail of all these, which is required to be sent to the Ministry of Corporate Affairs at the time of registering the company).

By doing all these things, the certificate of a private company is obtained from the Ministry of Corporate Affairs, and every year DIN kyc, CA, GST Tax etc. have to be filled within 6 months.

What are the advantages and disadvantages of private limited company

Advantages of Private Limited Company

Disadvantages of Private Limited Company

These are some of the main advantages and disadvantages of a private limited company, understanding which any person can open a private limited company.

Just by taking care of the right understanding and the right documents at the time of register, they earn good profit by opening the company, and they are successful in making their very good hold and recognition in the market.

FAQ

Q: Is the prospectus of the company issued to the public in a private limited company or not?

In a private limited company, the prospectus of the company is not shown in public, under which the main things related to the company are there.

Q: What is the salary rule in a private limited company

Q: Can a private limited company be closed?

Yes, Private Limited Company can also be closed by acting according to the consent and rules of all the directors.

Q: What are the names of some famous private limited company?

Some famous private limited company names-

Learn how to open Private limited company in India.The legal documents which need to be submitted.Annual charges and PVT ltd Benefits.

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