A private limited company can be registered by an individual or a group of people having the objective of providing some service or selling goods with a motive to earn profits. A Pvt Ltd company can be started with a very minimum paid up capital. To register a private limited company two or more directors are required and there can be a maximum of 200 directors in a company.
A Private limited company can be categories into three types -
Let’s discuss all types of private limited companies one by one in detail, which is useful to understand before starting the private limited company registration process.
A Private company limited by shares is a type of company in which the capital of a company is divided into small pieces and these small pieces are called "shares." The shares of a company are held by its shareholders.
A private limited company limited by shares means that the members have limited liability which states that the personal assets of the members will not be used in case the company incurs any losses or if any payment is due to the creditors.
In a private limited company limited by shares, the members enjoy limited liability in which their liability in the company is limited to the amount of money they invested in the company.
In a Company limited by guarantee, the capital is not divided into shares, unlike a company limited by shares. The members limited by guarantee means that they do not commit to provide capital in the company but they provide guarantee in case the company is winding up or incurs huge losses.
The members who are limited by guarantee are known as Guarantors, they provide support to the company in case of winding up or the company is liable to pay the amount to the creditors.
A company which has unlimited liability for its members means that the personal assets of the members are at risk. In case of liquidation of the company the personal assets of the members will be used to pay off debts and liabilities towards the creditors.
The members in the unlimited company have unlimited liability due to which their personal assets are always at risk and can be utilised during the winding up or at the time of payment for the liability.
To incorporate a private limited company, you need to go through the complete registration process of a private limited company online in India, as prescribed to register private limited company under the Companies Act. To incorporate a company, you need to submit various documents such as identity proof of the members and address proof of the members.
Given below is the complete steps to incorporate a private limited company in India:
These are the steps that must be completed in order to get your private limited company registration in India.
The popular examples of Private Limited companies are Flipkart, Amazon, Snapdeal, Ola, Zoom Car, Zomato, MakeMyTrip etc. These are all pirate entities that can be limited by different company types mentioned above.
Conclusion
The process of private limited company incorporation is a very complex process, and it involves various procedures and checks to be followed during the company registration process, considering the overall importance of private limited company structure and compliance framework. Therefore, it is required to take advice from a professional who can make your company registration process easier and quicker. Choose Professional Utilities for a great company registration experience. Just fill out the contact us form.
A private limited company can be categorised into three major categories which are
Some examples of a Private limited company are Flipkart, Snapdeal, Ola, Zoom Car, Zomato, MakeMyTrip etc
The companies are majorly classified into two broad categories which are Private company, public company, Section 8 Company, Limited Liability company.
The characteristics of a limited company include separate legal entity, limited liability, Easy Fund raising, Tax benefits.
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