Perks Of Forming A Private Limited Company

Perks Of Forming A Private Limited Company

A private limited company is a business structure created with at least two directors and two shareholders. In such a firm, the shareholder’s liability is limited only to the number of shares held by him. There are several benefits that you should know before forming a private limited company like limited liability for members, permanent legal existence, and a separate legal identity. If you want to form such a business entity you should know all about how to create a private limited company.

Minimum Requirements When Forming A Private Limited Company

The following are the minimum requirements for registering a private limited company:

  1. No of members and directors: The Companies Act, 2013 makes it statutory for the company to have minimum two and maximum 200 members. The directors should have a DIN (Director Identification Number), and one director needs to be an Indian resident.
  2. Company name: The name of the company should be approved by the Registrar of Companies (ROC) and should cover the following:
  • The primary name
  • The activity of the firm
  • It should mention ‘Private Limited’ at the end
  1. Registered Office Address: The permanent address of the registered office has to be filed with the ROC.
  2. Documentation: Documents can be submitted electronically with a digital signature needed to verify the authenticity.

The Process For Registering A Private Limited Company

  • Apply for a Digital Signature Certificate (DSC)
  • Obtain a DIN (Director Identification Number)
  • Apply for the company name availability
  • File the EMOA and EAOA for registration of the firm
  • Make an application for the PAN and TAN for the firm
  • The ROC will issue the certificate of incorporation together with PAN and TAN
  • A current account can be opened in the firm’s name

The team of 3E Accounting India team is very experienced in all the legal formalities for company registration. They will guide you on everything required for forming a private limited company. They will help you with the company registration process and will make the process of India Company Incorporation smooth for you.