A private company is a group of two or more individuals who come together with a common perspective of engaging in business to earn money from it. Persons who engage in such business make standard criteria and a right attitude to form place and avail the opportunities in the capitalist economy, so that it may sustain properly in future.
A private company is made to fulfil the demands arising out of the market conditions and to derive the expected return by investing the human and financial capital of the nation.
Benefits of Private Company Registration
- There is no minimum capital required to launch a Private Limited Company.
- It can raise funds from Venture Capitalists or Angel investors.
- Shares of private limited can be transferred to other people by the shareholder.
- Foreign Direct Investment (Foreign entity or foreign person) is allowed to invest directly in a Private Limited Company.
- The personal assets of members are not used to pay the debts of the company during liquidation or crisis, as the liability of the shareholders is limited.
- It improves credibility, as the details of the company are made available officially.
Eligibility for Private Company Registration
Under Section 2 (68) of The Companies Act, the legal requirements of a company are as follows:
- There must be a minimum number of 2 people to form a private company.
- The maximum number should not exceed 50.
- Persons may/may not be the citizens of the country.
- They must not be guilty of any offense that involves legal charges.
- The maximum number of directors should not exceed 15.
- Minimum capital is required to be Rs 1,00,000 or above
- Liability of the shareholders is kept to the extent of their share in the company.
While all this happens to be the basic requirements of the company for getting itself registered.
Document Required for Private Company Registration
Under Section 2 (68) of The Companies Act 2013, certain documents are required for the registration, which is as follows:
- Address proof of the Company where its actual business is operating
- Residential proof of the Company’s Office
- Personal details of the directors who are to administer the company
- Photographs of the Company’s directors
- Business details comprise of office amenities, their names, and status thereof
- Information regarding the land of the premises built upon.
- Name of the types of partners.
Company registration establishes the base for the new companies for the increased competition with respect to the stages of the economy.
If you want to register for a new company, BTHAWK is providing the services of registration.