What is the Pvt. Ltd. company registration limit in India?
What is the Pvt. Ltd. company registration limit in India?
As with every business endeavor, one of the first things you will need to determine is the legal structure of your business. In India, there is a preference among young and motivated individuals to register a Private Limited Company (Pvt. Ltd.). However, one must understand the kind of registration the Pvt Ltd. Companies possess and the corresponding restrictions imposed on them.
The intent of this blog is to demystify the concept of Pvt. Ltd. Company Registration Limits in India. We will discuss the main points, ideas, and questions that may be interesting for readers, and provide some tips on how to register as easily as possible.
Pvt. Ltd. Company: A Brief Overview
A Pvt. Ltd. company is an independent legal entity that has its own existence completely different from the owners of the company or the shareholders. It offers several benefits, including:
Limited Liability: Business risks are somewhat mitigated because shareholders cannot use their personal cash to pay for business debts.
Separate Legal Identity: It can acquire and hold title to property; can make and enforce contracts; and can sue and be sued in its own name.
Increased Credibility: If your business is incorporated as a Pvt. Ltd. it can also improve its image and get more funding.
Understanding Registration Limits:
As of now, there are no stringent rules with regard to the minimum or maximum amount of capital that can be stated by a Pvt. Ltd. company in India. This means that there is no minimum amount of capital you need to raise to start your company. However, there are a few key things to consider:
Share Capital: There is no minimum, but you have to identify the share capital of the company or the total amount of shares divided by the unit. This establishes who owns shares and how they are allowed to vote on issues affecting the company.
Paid-up Share Capital: In most of countries, a part of the share capital must be subscribed to and fully paid by the shareholders at the time of company formation. In the case of private limited companies, the minimum paid-up capital is usually one Rupee.
Stamp Duty: The amount of stamp duty to be paid on the share capital depends on the state through which the company is registered.
Here's a simplified example:
Suppose you want to start a Pvt. Ltd. company and two people you wish to be the shareholders. You stated that the share capital is Rs. 10,000 split into 100 shares of Rs. 100 each. You and your partner invest Rs. 500 each towards paid-up capital, making it a total of Rs. 1000. This completes the minimum requirements for registration and you may go ahead to register.
What identification documents will I be required to produce when registering?
You may find that the documents that you need to provide may differ slightly depending on the state. However, they typically include:
* Digital Signature Certificate (DSC)
* DIN of all the directors
* The PAN card of the company as well as the directors
* Any business may require the name of a company and in order to ensure that it is available then a company name availability certificate is issued.
* Identity proof of registered office address
* Memorandum of Association (MoA)
* The Articles of Association (AoA)
Benefits of Choosing Mind Your Tax for Pvt. Ltd. Registration:
In case you are thinking of getting registered for a Pvt. Ltd. company, Mind Your Tax can be a place you should look forward to. Here's what we offer:
- Expert Guidance: We will provide you with the necessary guidance and support regarding the registration and the fulfillment of all the requirements.
- Hassle-free Experience: The following reasons provide ample evidence that we make everything easy for you, thus saving your time and energy:
- Cost-effective Solutions: We have some of the best rates in the market to ensure that you get the best deal that you can afford.
- Post-registration Support: We do not stop there, after registration we ensure that you have continuous compliance and tax filing needs.
It is always interesting to start a Pvt. Ltd. company that can be a gateway to progressing towards being an entrepreneur. This article explains the registration limits and how best to overcome them by consulting experts. If you are Looking for Pvt. LTD. registration in Bangalore is the one-stop destination. Also, you can visit the ROC filing service in Bangalore.