Private Limited Company Registration Processby Ananya Nair Accounting and Legal Services
A private limited company or PLC is the most standard and extensively acknowledged corporate legal entity in India restricts the right to transfer its shares.
What are the features of a private limited company?
Number of The Members Required - A private limited company required a minimum number of 2 members and a maximum number of 200 members as per the companies Act 2013.
Perpetual Succession - The life of the company keeps on existing for a countless period of time. Under any situation like death, liquidation or bankruptcy of the business, the company will remain to exist. This gives way to the perpetual succession of the company.
Limited Liability - For every shareholders or members of the company liability is limited in Pvt.ltd Company. Personal belongings of the shareholders or members of the company will not be in risk at all under any circumstances. If in any case the company will face business loss etc. the members or shareholders are not liable to sell their personal properties.
Separate Legal Entity –
A company has an identity distinct from its members. Thus, the assets and liabilities of the company are separate from that of its owners.
A legal entity is usually a business that can be demarcated from a different business or individual with respect to accountability. For any private limited company the owners are not responsible for any activities taken by the company except caused with deceitful purpose with involvement of the owners.
Risk Bearing For any business organization the risk of any financial damages is accepted by the shareholders. This is different for sole proprietorship and partnership where one or few persons bear the fatalities respectively. Hence if any company experiences damages, all the shareholders contribute to such a loss to the amount of their share in the company’s capital. Hence the risk of loss thus gets divided over a large number of shareholders.
Registration Process of Private Limited Company:
Procurement of Digital Signature Certificate – This is compulsory to obtain Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) for private limited company registration process. DSC is required for e-form filing on the portal of MCA and for the director of the company it is required to obtain DPIN through online.
Get Approval of Company Name – Getting approval for your company name is another important step of private limited company registration. You need to submit minimum 2 and maximum 6 proposed name of your company to MCA for approval. While checking the name of your company MCA considered few points like availability of the name, standard of the proposed company name etc. The process of approval generally completed within 5-7 working days.
Company Registration – You need to collect all the required documents for company registration process and submit to MCA along with an application. Usually in 5-7 working days the company registration process gets completed.
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Created on Dec 20th 2019 05:31. Viewed 479 times.