What do you understand by the term Private Limited Company?
Great idea is not worth until it is executed whereas great company never exists until it is registered. Today’s free business environment observed across all corners of globe is a result of globalization and fruitful policies governed by the respective governments. For your business purpose, crossing the limit of boundaries set by any country is easily possible using legal business setups. To reach your business at your esteemed customer’s doorstep, starting or forming your company through rules and regulations set by ministry is a great way. Private Limited Company is nothing but type of company registration requiring minimum two directors; need to register under the Company Act, 2013 and with Ministry of Corporate Affairs (MCA).
Why a Unique Name is Must?
Person is known by his character so as company is known by its name. Every person has different character so as every company must have different name. As per MCA rules, prior to your company registration process, you must have unique name which is not same or similar to any other company in the same sector. Your company is divided into three divisions: Key Name, Activity Name and Suffix Name. For e.g. in case of ours, Matriye Capital is key name, banking solutions is activity name and PVT LTD or LLP or Ltd is suffix.
Process of Private Limited Company Registration
- Choose directors and submit their documents
- Apply for Digital signature (DSC)
- Submit all legal documents
- File your documents with ROC
- Finalize MOA / AOA
- Receive certificate of incorporation
Investment:
- 8000*
Professional fees
Advantages of Private Limited Company
Director’s personal savings and assets are not under risk if company failed to repay the loan. This advantage made Private Limited Company registration option as a favorite choice among startups.
No need to appoint or select many directors, as only two directors are enough to roll you company registration process.
A tag of ‘Private Limited Company’ behind your business name lets you apply for loans and get those loans sanctioned easily as Pvt. Ltd. is considered as symbol of trust and reliability.
Directors don’t have access o any company liabilities over the investments made by them. For example, if two directors have invested Rs. 5 lakh each in company, and by some reason company has liability of Rs. 20 Lakh, then both directors has access to Rs. 5 Lakh only.
A single director of company can be shareholder or director or investor or vendor at a same time.
Rights and authorities of one director or shareholder can be easily transferred to new director or shareholder.
Company will not shut down even by the death or non-existence of any director.
