Private limited company is a popular business entity with private ownership. Private limited company is the most popular corporate entity, which functions legally in India. The registration of private limited company should be made through the Ministry of Corporate Affairs (MCA). A number of two shareholders and directors are required to register a private limited company. The minimum capital to start a private limited company is Rs.1,00,000.
All the directors and shareholders of the company should have the identity proof and address proof. PAN is required for the Indian nationals. Along with the PAN card the director should also provide an address proof, which is not older than 2 months.
A residential proof is alsorequired to validate the director’s current address. Aadhaar card, Electricity bill, Telephone bill,Bank statement, driving license are acceptable as a document of address and residential proof. For Foreign nationals, notarized passport copy is mandatory.
The foreign nationals should also submit a notarized address and residential proof along with their notarized passport copy. Driving license, Residence card, and Bank statement are acceptable.Registered office proof
The companies should have a registered office in India. An authorized letter from the landlord to use the premises as the registered office is also required along with the rental agreement. Current copy of electricity bill, property tax receipt, or water bill in the name of the registered office should be submitted.
In general partnership, the partners are legally responsible for the debt raised. They may sell their personal property to repay those debts if they fail to repay through their business. But, in PLC the property of the shareholders will be safe. The amount invested in the beginning might be lost.Separate legal entity
The private limited company is a legal entity under the Companies Act. It has a wide range of legal capacities such as opening a bank account, obtaining licenses, and hiring employees. A shareholder or a director of PLC does not have a personal liability for the company’s debts.
Don’t Hesitate To Ask