(A
private limited company is a company privately suitable for small businesses.
This category of corporate entity limits owner liability to the share they
hold; maximum number of shareholders is 50, and restricts shareholders from
publicly trading shares.)
What is a Private Limited Company
A company is an association of
people who joint to gatherer for a common business goal. Further, they use the
common pool of resource to achieve the common goal. Private Limited shall be
well suitable for small scale start-up entrepreneur. This Private Limited is
the one which provides a benefit of limited liability. There type of limited
company restricts the liability of the share holders to the value of share they
hold.
Documents that are required for Private Limited Registration
·
Address Proof of all the Directors
·
ID Proof of all the Directors
·
PAN Card of all the Directors
·
Photograph of all the Directors
·
Rental Deed of the Corporate Office
·
Electricity Bill of the organisation
Why to choose a Private Limited Company
We have plenty of reasons to choose
this type of business module. But the primary reason for choosing a private
limited company is that if your business is of a Risky nature, then go for
Private Limited, because it has the character of Limited Liability. The share
holder's liability is limited to the value of his share.
How to Register a Private Limited Company
1.
Name Approval of the Company by ROC
2.
Obtain the Digital Signature
3.
Apply of Director Identification Number
4.
Filing of Memorandum of Association and Article
of Association
5.
Issuance of Certificate of Incorporation
Requirement for Private Limited Company Registration
Minimum Two share holders and it
can be a maximum of 200 share holders required to form a Pvt. Ltd. Company.
Further the minimum authorised share capital for forming a Private Limited
Company shall be Rs.1,00,000/-. In order to form a Private limited company, you
need to have a Registered office space for commercial use.
Advantages of Pvt. Ltd. Registration
Ø
Limited Risk to the personal property of the
share holders and Directors
Ø
It's a legal entity, it can hold property in its
own name and can sue and can also be sued in its own name.
Ø
Trustworthiness is again another important
advantage of a private limited company. The term Pvt. Ltd. gives a better
status.
Ø
Can enjoy the benefit of perpetual succession.
Death of the director will not make any effect on the existence of the company.
Ø
It attracts investors. You can fetch investment
only if it's a Private limited Company
Taxation and Private Limited Company
Private
Limited Company in India is considered a tax resident; it is therefore eligible
for tax under Income Tax Act, 1961. Tax rate of 30% on the total income
A.ARIVAZHAGAN ADVOCATE
LE INTELLIGENSIA LAW FIRM
http://leintelligensia.com/
http://leintelligensiaipr.com/
Call: 9941993399
A.ARIVAZHAGAN ADVOCATE
LE INTELLIGENSIA LAW FIRM
http://leintelligensia.com/
http://leintelligensiaipr.com/
Call: 9941993399