This is one of the most famous and commonly registered companies in India that is registered by many start up businesses and existing businesses.
Reasons to Register a Private Limited Company – (Features)
Private Limited Company allows owners to subscribe shares and these owners are known as share holders.
It is a separate legal entity in terms of taxation and liability.
Liability of owners is limited. If the company is in loss then owner’s assets are not at risk.
For managing the company Directors can be appointed by the shareholders.
There should be minimum 2 Directors identified before starting the registration process. Total paid up capital for this type of company is 100,000. It can be more depending on the kind of investment directors want to make at the time of starting the company.
Steps of Registering a Pvt. Ltd. Company
Step 1 – Taking Directors Identification Number (DIN)
Step 2 – Taking Digital Signature of Directors
Step 3 – Reservation of the name of the Company. Suggested name must not be registered before and subject to availability and approval.
To private limited companies cannot have same name.
Step 4 Draft Memorandum of Association
Step 5 – Draft Articles of Association
Step 6- File documents with authorities and get approval
Step 7 – Get Final Certificate of Incorporation
You need to pay all government fees associated with the registration.