Loading...

PVT LTD REGISTRATION

PVT LTD REGISTRATION

A Private Limited Company is a business entity held by small group of people. It is registered for pre defined objects and owned by a group of members called shareholders. Startups and businesses with higher growth aspiration popularly choose Private Company as suitable business structure.

Get PRIVATE LIMITED REGISTRATION at 10000 Rs.

Online PVT License

Apply Now

BASIC KEY POINT
  • To start a company, a minimum number of 2 members are required and a maximum number of 200 members as per the provisions of the Companies Act, 2013.
  • The liability of each member or shareholders is limited. It means that if a company faces loss under any circumstances then its shareholders are liable to sell their own assets for payment. The personal, individual assets of the shareholders are not at risk.
  • The company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its members. This leads to the perpetual succession of the company. The life of the company keeps on existing forever.
  • A private company has a privilege over the public company as they don’t have to keep an index of its members whereas the public company is required to maintain an index of its members
  • When it comes to directors a private company needs to have only two directors. With the existence of 2 directors, a private company can come into operations.
  • It must have a minimum paid-up capital of Rs 1 lakh or such higher amount which may be prescribed from time to time.
  • Prospectus is a detailed statement of the company affairs that is issued by a company for its public. However, in the
    case of a private limited company, there is no such need to issue a prospectus because this public is not invited to subscribe for the shares of the company.
  • It is the amount received by the company which is 90% of the shares issued within a certain period of time. If the company is not able to receive 90% of the amount then they cannot commence further business. In the case of a private limited company, shares can be allotted to the public without receiving the minimum subscription
  • It is mandatory for all the private companies to use the word private limited after its name