Normally , the promoters would be holding all shares in Private Limited Company. A group of promoters would be owning the Private Limited Company. To incorporate a Private limited company in India, a minimum of two shareholders is required and a maximum of up to two hundred shareholders are allowed. The liability of the owner limits to their shares. To transfer the Shares, Share Transfer Deed in the prescribed format must be obtained from the transferor to transfer the shares to the transferee to execute the share transfer.
At Clearfilings , we are giving a complete guidance to help you understand how to register a private limited company. Most of the start-ups and growing businesses wish to register a company in India to get the benefits of outside funding which limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. The companies that are registered as Private Limited Company are required to hold board meetings once every three months and there must be four meetings each year. Notice for the board meeting should be given in a proper document format a Non-issue of notice of board meeting will be treated as invalid and resolution passed in the meeting will be treated as inoperative.
The main advantage of owning a Private Limited Company is that the Liability of the shareholder limited to share held in the company. In case of fraud, would negate an owner’s limited liability protection.The Shareholder of the company would not risk losing their personal assets.
The Private Limited Company would not suffer due to shareholder dies or leaves the business as its artificial juridical person. The deceased person is replaced by his legal hire. The continuity of existence is a very much advantage to private limited company.
The share of private limited company cannot sell to outside buyers. Shareholder must agree to sell or transfer of shares. The RBI also instructed Banks some regulations on funding to Private Limited Company under the Companies Act.
A Private Limited Company easily funded by Banks to their Business. The Private limited company having a good repo in Banking because of legally registered under the companies Act. Manage your time so you’ll get more done in less time.
For all those who have a liability to register themselves, if fails to do the same than under section 75A of the finance act 1994 penalty for the failure of an assessed to get himself registered was fixed at Rs. 500/- as a onetime payment but subsequently this section was deleted by the virtue of the finance act 2004 and now the general penalty that is applicable is Rs. 1000/- as per section 77 of Finance act.
Collection of Documents
Preparation of Application
Submission of Application
Certificate of PVT. Limited Registration