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Private Limited Company Registration

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  • Private Limited Company Registration

Private Company

Starting a business is a more interesting and an innovative experience in anyone’s life.” Private Limited Companies has the biggest advantage that it allows the 100% foreign direct investment, where foreign entities can invest a huge amount to the Indian company which doesn’t need any approval from the government”. Private company is formed or organised by a group of team members with the limitation of 50 exclusive of the former and present employees. Most importantly the shares will not be traded to outside of the public and transferring of shares, inviting the public to subscribe for shares and debentures would be strictly restricted.

Characteristics of Private Company

In a private company, the minimum capital investment can be of rupees 1 Lakh.

  • While forming a private concern, it needs only two or more persons.
  • Private companies are exempted from holding statutory meetings.
  • It has been limited that there should not be more than two directors.
  • It has been given privilege to amend all or any of the provisions which relating to conduct the general meeting.
  • Restrictions on the power of board of Directors are not applicable in the case of private companies.
  • A private company need not constitute a committee of the board which is known as audit committee.
  • There is no need of central government approval in the case of increasing the number of directors beyond 12.
  • All the copies of profit and loss account, balance sheets to be filed separately and submit to the registrar, no person other than a member is entitled to inspect the profit and loss account details.

Documents Needed For Private Company Registration

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