Sands & Company
Delivering excellence in Accounting, Taxation, and Consultancy services with integrity and expertise.
A Private Limited Company is a preferred choice for startups and businesses with high growth ambitions in India. Incorporated under the Companies Act of 2013 and regulated by the Ministry of Corporate Affairs (MCA), it provides a registered corporate structure with a distinct legal identity. This separation safeguards the personal assets of the owners and allows the company to contract in its own name, offering significant legal and financial protections..
Startups and expanding businesses often choose a Private Limited Company due to its ability to secure external funding, limit shareholder liabilities, and provide employee stock options (ESOPs) to attract and retain top talent. This makes it a versatile and growth-friendly corporate structure.
To start a company, a minimum number of 2 members are required and a maximum number of 200 members as per the provisions of the Companies Act, 2013.
The liability of each member or shareholders is limited. It means that if a company faces loss under any circumstances then its shareholders are liable to sell their own assets for payment. The personal, individual assets of the shareholders are not at risk.
The company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its members. This leads to the perpetual succession of the company.The life of the company keeps on existing forever.
Private company has a privilege over the public company as they don’t have to keep an index of its members whereas the public company is required to maintain an index of its members.
When it comes to directors a private company needs to have only two directors. With the existence of 2 directors, a private company can come into operations.
It must have a minimum paid-up capital of Rs 1 lakh or such higher amount which may be prescribed from time to time.
Prospectus is a detailed statement of the company affairs that is issued by a company for its public. However, in the case of a private limited company, there is no such need to issue a prospectus because this public is not invited to subscribe for the shares of the company.
The amount received by the company which is 90% of the shares issued within a certain period of time. If the company is not able to receive 90% of the amount then they cannot commence further business. In the case of a private limited company, shares can be allotted to the public without receiving the minimum subscription.
It is mandatory for all the private companies to use the word private limited after its name.
"PAN Card of shareholders and Directors. Foreign nationals must provide a valid passport"
Aadhar card and Voter ID/ Passport/ Driving License of Shareholders and Directors.
Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.
Latest Passport size photograph of Shareholders and Directors.
Latest Electricity Bill/ Telephone Bill of the registered office address
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement of the registered office should be provided if any
Delivering excellence in Accounting, Taxation, and Consultancy services with integrity and expertise.