Private Limited Company

sec 2(68) defined Private Company as a company having a minimum paid up share capital, as may be prescribed and which by its article

1.  restricts the rights to transfer its shares if any
2. limit the number of member to 200, not including:- i) persons who are in the employment of the company; and (ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased; and where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of membership, be treated as a single member:
3. prohibits any invitation to the public to subscribe for any securities of the company;

Minimum number of director-

A private company In order to form a Private Company, a minimum two directors are required as per Section 149 of the Companies Act, 2013. Further even in the case of a Private Company there shall be at least one director who has stayed in India for a total period of not less than one hundred and eighty-two days in the previous calendar year. [Sec 149(3) of the Companies Act, 2013].

Point to be kept in mind before incorporation of Private Limited Company

• The proposed name should not fall in the ambit of undesirable names specified in Rule 8 of Companies (Incorporation) Rules, 2014.
• There must be at least 2 subscribers to the memorandum and the maximum number of members allowed is 200 members.
• Minimum number of Directors required is 2 Directors with a maximum limit of up to 15 Directors. But a company may appoint more than 15 directors after passing a special resolution in a general meeting.
• Every company shall have at least one director who has stayed in India for a total period of not less than 180 days in the previous calendar year as per section 149(3) of the Companies Act, 2013.

Process For Incorporation

Digital Signature

DSC is a secured digital key that contains details of the person holding the Digital Signature Certificate such as name, country, email address, pin code, the name of the Authority that has issued the DSC and the date of issuance of the DSC.

Digital Signature Certificate (DSC) has been made mandatory by the Ministry of Corporate Affairs during company registration. In addition, it may also be required by the company directors

Obtaining Director Identification Number (DIN)

The first step for the registration of a Private Limited Company is to obtain Director Identification Number (DIN) for the proposed Directors in the Private Limited Company. (Note: Maximum three Directors are allowed to use this integrated form for filing an application for allotment of DIN while incorporating a company other than a Producer company. In the case of a Producer Company, a maximum of five directors are allowed to apply for allotment of DIN). 

Name reservation of Company

According to the Company Act, a firm needs to reserve the name for the company incorporation with the Registrar of Companies (RoC). Once the name is approved, a time-lineof 20 days will be provided until further forms are submitted to use the name for firm incorporation. It can be extended further 20 days by making an extension Request.

Check list

 Directors

• ID and Address Proof {Bank Statement/Electricity Bill/Telephone bill/ Mobile Bill (not later than 2 months) of Directors & Shareholders
• ID proof and Address Proof of the Promoters/Subscribers/Shareholders (PAN, Aadhar Card, Passport) 
• Passport size pictures of Directors
• DSC of Directors and Shareholders
• Mobile No. and Email id of Directors
• Provide DIN if already have of Directors

 Company

•  Authorized Capital and the proportion of contribution by the Shareholders
•  Detailed Objects of the Company
•  Utility bill for registered office of the Company(Not older than 2 months)
•  Proof of ownership along with NOC of the owner

Advantages of Incorporation of Company

1. Creates a Separate Legal Entity
2. Company has Perpetual Succession
3. Can Own Separate Property
4. Capacity to Sue and be sued
5. Capacity to raise finance

Certificate of Incorporation

When the e Form is processed and DIN is generated, an acknowledgement email of Certificate of Incorporation (C o I) is sent on email. Further, on approval of S P I C e+ forms, the Certificate of Incorporation (C o I) is issued with PAN and TAN as allotted by the Income Tax Department. An electronic mail with Certificate of Incorporation (C o I) as an attachment along with PAN and TAN is also sent to the user.