Private Limited Company Registration

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When two or more than two persons are interested to share their profit and liability and register their business entity under the Companies Act, 2013, it is called a Private Limited Company. As per Sec 2(68) of the Companies Act, 2013, a private Company means a company, which has such minimum paid-up share capital as may be prescribed and which by its articles provides the following.

Restricts the right to transfer its shares
Except in the case of one-person company (OPC), limits the number of its members to two hundred excluding present and past employees who continue to be the members of the company.
Prohibits any invitation to the public to subscribe any securities of the company.

Key features of a private limited company

Minimum no of Members is Two and maximum should not be more than 200
At least Two directors
The Name of a private limited company must end with the word “Private Limited”

The directors of the proposed company must have DIN (Directors’ Identification Number) and digital signature certificate (DSC) to digitally sign the incorporation and other related documents.
Reservation of name- An online application for reservation of name shall be made through website www.mca.gov.in by using RUN (Reserve unique Name) along with fees of Rs.1000 as per Companies (Registration Offices and fees), Rules,2014 which may either be approved or rejected, by the Registrar, Central Registration Centre (CRC).
Preparation of Memorandum of Association (MOA)- Drafting of MOA is generally a step subsequent to the reservation of name made by registrar. The following are the main clauses of MOA

Name Clause
Registered office clause
Object clause
Liability Clause
Capital Clause
Association clause

Preparation of Article of Association (AOA)- Articles of Association is an instrument that defines the purpose of the company and specifies the regulation for its operation.

Filling of the documents with Registrar of Companies (ROC)-An application shall be filed, with the Registrar of Companies within whose jurisdiction the registered office of the company is proposed to be situated, in form No.INC 32 (SPICe+) along with following documents.

Memorandum of Association
Article of Association
Id proof of proposed directors and members
Address proof of proposed directors and members
Address proof of the principle place of business
Certificate of incorporation and allotment of Corporate Identity Number (CIN)

If the Registrar of Companies is satisfied that everything as per rule and regulation in regard to incorporation of companies. he/she shall issue a certificate of incorporation in form no INC 11.

ID proof and address proof of proposed Directors and members
Telephone bill/Mobile Bill/Bank Statement/Electricity Bill
Address proof for the Registered place of business of the proposed company viz. Telephone bill/electricity bill/gas bill/water bill
Rent agreement with rent slip

Company Name (RUN) – Rs.1,000 Govt. Fee per RUN
Memorandum & Articles – Rs.300 charges
SPICe+ Forms – Rs. 200 charges
Incorporation Filing – Rs.500 charges
GST certificate – Rs.300 charges
PAN & TAN – Rs.100 charges
PF Registration – Rs.100 charges
ESI Registration – Rs.100 charges

Introduction

When two or more than two persons are interested to share their profit and liability and registered their entity under Companies Act 2013. As per Sec 2(68) of Companies Act 2013.A private Company means a company, which has such minimum paid-up share capital as may be prescribed and which by its articles provides the following.
(i) Restricts the right to transfer its shares
(ii) Except in the case of one-person company (OPC), limits the number of its members to two hundred excluding present and past employees who continue to be the members of the company.
(iii) Prohibits any invitation to the public to subscribe any securities of the company.

Key features of a Private Limited Company

Minimum no of Members is Two and maximum should not be more than 200
At least Two directors
The Name of a private limited company must end with the word “Private Limited”

Nature and Characteristics of a Private Limited Company

Corporate Personality- A company incorporated under this act is vested with corporate personality, having its own name, seal and assets and distinct from its members.
Member- Private company is required at-least two members for registration under the Companies Act, 2013, which may extend to two hundred excluding present and past employees who continue to be members of the company
Directors- to run a private company need at-least two directors
Perpetual succession- A company has perpetual succession, i.e. the death or insolvency of a shareholder or all of them does not affect the life of the company.
Limited Liability-Liability of members is extended to amount of share he purchased or guarantee given to the company. Apart from above, shareholders are not liable to pay any extra amount. Any losses occurred by company does not create any liability for its members.

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