Private Limited Company Registration – An Overview
A private limited company is a famous business structure in India due to its distinct characteristic features. It is a separate legal entity, allowing limited liability protection to its shareholders and protecting their personal assets from business debts. Governed by the Companies Act 2013, a private limited company can be registered with a minimum of two shareholders and a maximum number of 200 shareholders.
This type is suited for businesses that aim to raise funds for operations in the long run. It allows shareholders to transfer their shares by the company’s Articles of Association (AOA) rules. However, unlike public limited companies, private limited companies cannot offer shares to the general public or trade them on the stock exchange. These companies must comply with regulations, including audits, annual filings and corporate governance norms. This structure is ideal for small and medium enterprises as it offers management flexibility and a specific degree of financial privacy.
Required Documents for Private Limited Company Incorporation
The company incorporation documents needed for a private limited company comprise legal and financial documents, including the following:
- ID Proof – PAN card for Indian directors and Passport for foreign directors.
- Passport-size photos of the directors.
- Address proof of directors – Driving licence, Aadhaar card, Ration card, Residence card (for foreign directors).
- Sample signatures of directors.
- Company Incorporation Certificate.
- Official address proof – Bank Statement or Utility Bills (electricity).
- Registered office proof:
- Copy of Sale Deed – If the property is self-owned.
- NOC from property owner – If the property is rented.
- A self-declaration confirming directorship in other companies.