A Private Limited Company (PLC) is a privately owned and operated small business that is one of the most popular ways to start a business in India. Private limited company registration in India is governed by the Companies Act of 2013.Whereas a private corporation must have at least two shareholders to be formed, the Companies Act of 2013 allows for a maximum of 200 members. If a private limited firm is facing financial difficulties, its shareholders should not be forced to sell their personal assets, as they should possess limited liability.A minimum of 2 directors is required for online company registration, with a maximum of 15 directors allowed. The proposed director must be at least 18 years old. In India, a foreign citizen can also be a director of a private limited business.
BENEFITS OF PRIVATELIMITED REGISTERATION
- Value in market is increased-In comparison to non-registered private limited companies, registered private limited companies are thought to be more trustworthy. The Ministry of Corporate Affairs' website provides easy access to information about forming a private limited company. They are trusted by vendors, suppliers, and investors over other company models.As a consequence, the company's market capitalisation amongst customers, other investors, and suppliers increases.
- Perpetual Existence-A private limited business can exist indefinitely. Private limited corporations are treated as distinct legal entities that exist independently of their owners. It means that they can't be disbanded or terminated due to the death, retirement, or insanity of any of their members, directors, or shareholders.
- International Growth-Other types of businesses require required licencing and clearance from the administration for foreign investments, whereas private limited corporations do not.
- Credit Availability-Debentures and investors can both provide capital to a private limited corporation. A registered private limited company is a corporate entity that draws angel investors and venture capitalists, ability to expand and generate funding for their business's development.
- Separate Legal Entity-A private limited company is a distinct legal entity with full legal standing to sue or be sued. It takes on the role of a fictitious person who can purchase real estate in its own name.
BASIC REQUIREMENTS FORPRIVATE LIMITED COMPANY REGISTERATION
- The name of the private limited company must be distinct from that of any other registered firm or trademark.
- A minimum of two directors are required for a private limited business.
- It's also important to remember that a private limited business must have at least two shareholders.
- All private limited company directors and members must have a digital signature certificate, which will be needed to register the firm.
- A private limited corporation can be formed with no minimum capital requirement.
- The procedure of forming a company online is fairly simple; make sure you have a unique name for your business, as this will assist you in forming a company quickly.
- For your private limited business registration, you must avoid using any offensive names.