Private Limited Company
A private limited company is a privately-held business entity. It is held by private stakeholders. The liability arrangement in these is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them.
With the startup ecosystem booming across the country and more and more people looking to do something on their own, there is a need to be well-acquainted with different business registration types i.e sole proprietorship, limited liability company and private limited company. In this article, we will talk about different sides of a private limited company.
As the name suggests, a private limited company is a privately-held business entity. It is held by private stakeholders. The liability arrangement in a private limited company is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them. The shareholders cannot be held liable beyond the value of the shares. The governing body for such a company is the Ministry of Corporate Affairs (MCA).
Section 2 (68) of the Companies Act, 2013 defines a private company as:
“A Company having a minimum paid-up share capital as may be prescribed, and which by its articles,—
Disadvantages of Private limited
One Time Fee
Service Provide Within 7 Days
One Time Fee
Service Provide Within 15 Days
Services Provided Before the Due Date
Yes, a small business can incorporate their business under private limited company registration in India. It provides them with the credibility, assurance and an image of their business before financial institution, suppliers and potential clients. It helps the company to get the funding, Business loans at minimum compliance from banks or potential clients while entering into the deals.
A person who want to become director of company, he has to first apply DIN through the Ministry of Corporate Affairs and submit the required documents related to Identity and Address Proof. Once the Ministry verifies these documents, the DIN will be allotted to the person
Any address whether its own of rented/leases premises, and where company hold Annual general meeting, for keeping audited books of accounts and other correspondence from all the statutory/government authorized. Registered office of company determine the jurisdiction of for registrar of company.
Yes, A company can change its registered office of any time by following specified procedure. It can be within same state or different state.
Ans: MOA Mean for Memorandum of Association whereas AOA means Articles of Association. Both these documents act as an important source of information for various shareholders and other stakeholders associated with a Company.
MOA, It reveals the name, aims, objectives, registered office address, clause regarding limited liability, minimum paid up capital and share capital of the Company. In short, it explains the relationship of a Company with the outside world.
AOAs are the necessary documents to be submitted when the company is incorporated with the Registrar of Companies (ROC). When AOAs are in conjunction with the MOA, they are called the Constitution/Rule and Regulation of the Company
Yes, Rule 27 of Companies (Management & Administration) Rules 2014 says that A Listed Company or a Company having more than 1000 Shareholders shall maintain Records in electronic Format. However all the other Companies are required to maintain statutory records in the form of registers, minutes etc. throughout its life.