What is a Private Limited Company?

What is a Private Limited Company?

What is a Private Limited Company?

Generally, the term Private Limited Company refers to a legal entity that is governed by a private company law. The Company Act, 2013 lays down the requirements for a Private Limited Company, which is governed by the Companies Act, 2013. The Company requires a minimum of two directors and two shareholders, of whom one has to be an Indian citizen and a resident of India.

The following are the minimum requirements for registering a company in India:

  • The board should consist of 2 directors – 1 of whom should be Indian and one of whom should be a resident Indian
  • 2 Shareholders – The directors of the company can also be shareholders
  • The company’s registered office is in India

There are no restrictions on foreign shareholding in private limited companies in India, and therefore, most foreign subsidiaries are incorporated in India as private limited companies, which are permitted to hold 100% foreign direct investment (FDI) in most sectors.

Documents Required for Company Registration

In order to be able to do pvt company registration, the proposed directors will need to present the following documents to prove their identity in order to be accepted by the Registrar:

  • Indian Nationals: PAN cards are required
  • Foreign Nationals: Passports are required
  • In A directors’ address must also be included in one of the following documents, in addition to the above document.
  • Indian Nationals: ID Cards / Passports / Driver’s Licenses / Ration Cards / Aadhar Cards
  • Foreign Nationals: an I-D, a bank statement, and a residence card are required
  • A prospective Director must also submit the following documents, which must have been generated within the last two months, as proof of residency:
  • Indian Nationals: Utility bills, bank statements, and phone bills
  • Foreign Nationals: Statements of Account, Electricity Bills, Phone Bills

If There are a few documents that have to be submitted in the event that the company’s shareholder is an Indian company or one that is based abroad:

  • Investing in the company is authorised by a resolution of the board
  • Certificate of incorporation of the company
  • Proof of company address

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