Private Limited Company
Private Limited Company has been most sought after business form of doing the business in India in Corporate Form. The Private Limited company can be started with the participation of two or more person as director and shareholders. The compliance work in the case of Private Limited company is more as compared to Limited Liability Partnership or One Person company as the decisions of such Corporate entity is taken through Board / General Body meeting representing the shareholder & other stakeholders authorized representation. However, its compliances and reporting and disclosures requirements are lesser as compared to Public Limited company.
How to Form a Private Limited Company – Documents Required
- Directors Identification Number
- Digital Signature Certificate of the Proposed Director(s)
- Application for Name Approval
- Incorporation Documents along with Proof for Proposed Place of Business
- MOA / AOA of the company
- PAN Card of Private Limited Company
- Statutory Registration e.g. MSME/GST/TAN etc.
- Open a Current Account in the name of the company
- Start Doing Business
- Most of the commonly acceptable form of business entity accepted by Investors and Other stakeholders.
- Less compliance as compared to Public Limited Company.
- The Private Company can not invite the Public at Large to invest in the company unlike in case of Public Limited company.
- There is always a restriction on transfer of shares in the case of Private Limited company.
Ideal for Whom
- The Entrepreneurs who would like to raise funds from Friends, Relatives etc and intends in the form of equity share capital and intends to allot the shares against it.