A private limited company,
often referred to as a private company or an LTD (Limited) company, is a type
of business structure that limits the liability of its owners and restricts the
transferability of its shares. This form of business is commonly used in many
countries around the world.
Key characteristics of a private limited company include:
●
Limited Liability: The main and most
attractive feature of carrying out a business in a company registration is that the liability of the shareholders is limited. As for their
financial situations and other legal problems, it is also normally true that
shareholders’ assets are not at risk.
●
Minimum Paid-Up-Capital: While starting a company
registration it is obligatory to preserve the least paid-up capital
of Rs. 1 lakh.
●
Restricted Share Transferability: Stocks
of a company registration cannot be easily sold in the market or
transferred to anyone of the buyer’s choice. In most cases, the transfer of
shares is accompanied by some limitations enshrined in the articles of
association of the firm. Share transfers normally attract the approval of the
preexisting shareholders.
●
Number of Shareholders: The minimum number of
shareholders in a company registration is two and the maximum number
is Two hundred. There is no necessity to acquire a great many of the
shareholders.
●
Ownership and Management: In most cases, the
ownership and the management of the company registration are in two
different individuals or groups of people. The owners are the shareholders and
they get directors to run the business on their behalf day by day.
● Financial Reporting: Every company registration is, expected to provide the regulatory authorities in their jurisdictions with some form of financial statements/reports. However, the amount of disclosure provided is relatively low compared to what public companies put forward.
Legal Formalities: Private limited companies are governed by some legal requirements.; company registration is required to have annual general meetings and maintain certain statutory books. However, these requirements are generally less demanding than those that have to be fulfilled by public companies.
● Privacy: company registration moreover receives more benefits provided to them as compared to public limited companies in terms of privacy. Data on their sales, profits, management and other facts and figures are often not as easily accessible as in the case with larger companies.
● Identity Proof of Directors
and Shareholders (PAN for Indian nationals, Passport for foreign nationals)
● Address Proof of Directors
and Shareholders (Aadhaar card, Voter ID, Passport, Driving License)
● Registered Office Proof
(Utility bill, Rent agreement, and NOC from the owner)
● Passport-sized photographs of
Directors
● Digital Signature Certificate
(DSC)
● Director Identification Number (DIN) for all directors
Is it possible for small
businesses to get company registration in Lucknow?
Yes, a small business can register as a company
registration in lucknow, by registering as a private limited company they get
recognition in the eyes of the financial institution the suppliers, and the
clients.
Who can be a director in a company registration in lucknow?A person who is a citizen of India and has attained 18 years of age can become a director in a company registration in lucknow.
Can a proprietorship
firm be converted into a company registration in lucknow?
Yes, a proprietorship firm can be converted into a
company registration in lucknow. To know more get in touch with us at www.bizpriest.com
What is the
minimum capital required to start a company registration in lucknow?
A company registration in lucknow can be started
with any amount of capital there is no such minimum limit.
Browse practical answers curated by our CA and CS desks for PRIVATE LIMITED COMPANY.
A Private Limited Company offers limited liability protection, whereas a sole proprietorship does not. A company also has more formal management structures and legal requirements.
You can register a Private Limited Company online through the Ministry of Corporate Affairs (MCA) by submitting documents like the company name, address, and director details.
It offers limited liability, access to funding, credibility with investors, and easier transfer of ownership compared to other business structures.
A Private Limited Company must hold annual general meetings (AGMs), file annual returns, and comply with tax filings, including GST and income tax returns.
Your BizPriest account personalises pricing, documentation timelines, and deployment squads for every mandate.
Submit your query and our CA/CS desks will respond with a vetted answer within 24 working hours.
Explore verified answers. Filter by topic and follow threads for updates.
