With the growth of the economy, a lot of new startups are sprouting in our country. Millennials are more interested in handling their own business instead of working in the corporate world where someone else takes profit for their skills. Among the various types of companies such as one-person companies, partnership firms, etc., a private limited company is one of the most preferred types.If you are confused about these, you may want to engage a company incorporation expert like https://www.morrisonconsultants.com.sg/company-incorporation that can guide and advise you on these matters.It is because the liability of a shareholder is limited by the number of shares held. Looking at the rate at which private limited company registration forms are getting filled day by day, we can deduce that entrepreneurs are now more interested in forming a private limited company.
As per section 2(68) of companies act,2013 of the Constitution of India, a company having a paid-up share capital of at least one lakh rupees or higher is said to be a Private Company provided that:
- Transfer of shares is restricted
- of members must not exceed 200
- Restricts the investment from the public
Requirements for a Private Limited Company Registration Form
To help you in assessing your resources before filling the registration form, fulfil the following requirements:
Eligibility criterion:
- The number of directors must be at least two but not more than 200
- The company must have at least one resident director
- Minimum required share capital is Rs. 1 lakh
Documents required:
- PAN Card
- Copy of Electricity bill
- Sale Deed/ Rent Agreement
- Copy of Aadhaar Card
- Residence Address proof
- No Objection Certificate
Benefits of a Private Limited Company
The reasons why a Private Limited Company is preferred is as follows:
- With limited liability, the personal assets of shareholders are secured
- A private limited company can have up to 200 members
- A Private limited company is treated as a legal entity and thus can function even after the death of a member
Setting up a company takes more than just filling out a private limited company registration form. If you are willing to set up a company and you are not legally proficient in how to register a company, reach out to the professionals like 3E Accounting India. They lead a team of experts who are well versed in India company incorporation services.