Private Limited Company (Pvt. Ltd.) is one of the most common type of company or legal entity formed in India. A Private Limited Company provides a good balance between limiting liability of owners/ shareholders and retaining control by entrepreneurs (shareholders) in the administration of the business, including transfer and succession. The operational and business functions of the company are carried out by the directors, who can be shareholders themselves, with various managers, employees and other staff to support them. Compliance requirements are less compared to the Public Limited Company, however, books of accounts have to be prepared and maintained and have to be audited. Major drawback of a Private Limited Company is the restriction on transferability of shares, particularly through listing in a stock exchange, etc. and cap on the number of members to 50. If a company wants to overcome these restrictions, say in the process of business expansion where company is looking for infusion of capital through sale of shares to public at large, then converting Private Limited Company to a Public Limited Company is a viable option. A Public Limited Company is not bound by the restrictions of a Private Limited Company, but has to comply with a lot of other requirements, including disclosures, etc.
Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014, and is handled by the Ministry of Corporate Affairs through Registrar of Companies. The requirements for formation of Private Limited Company are:
1) a minimum of two shareholders, either or both of whom can be another corporate legal entity, including foreign entity.
2) a minimum of two Directors (natural person).
3) an Indian office address.
Once documents are provided, you can leave the rest of the formalities on us and expect the registration to be completed within 7 to 10 working days.
DSC stands for Digital Signature Certificate, using which you can sign electronic documents. For the registration of a Private Limited Company, all documents needed are electronic, therefore, a DSC is required by the partners.
Yes, one can register the company at their residential address. One requires to submit the utility bill copy of the same.