India is rapidly becoming the hub for start-ups with countless opportunities for entrepreneurs who want to start their own business. One such type of company, that an aspiring entrepreneur can establish is a Private Limited Company. A PLC is a separate legal entity that was introduced under the Companies Act, 2013 and is registered with the Registrar of Companies (ROC) at the Ministry of Corporate Affairs (MCA). All you need to establish a Pvt. Ltd. A company is 2 individuals who will serve as the Directors and other 2 individuals who will Shareholders. However, a PLC can have a maximum of 15 Directors and 200 Shareholders. Since incorporating a PLC has limited liability for the Directors running it, any loss incurred by the company does not need to be paid through the personal assets of the individuals running it.
Incorporating any kind of business comes with a list of benefits too. Private Limited Companies are no exception. Besides giving limited liability to its owners, a Pvt. Ltd. A company comes with other advantages as well:
- If you are the shareholder of a PLC, you have limited risk towards your personal assets. For instance, the shares of your company have incurred losses, you will only be liable to pay the liability in regards to the contribution made by you.
- An entrepreneur can raise easy funds through equity by setting up a Pvt. Ltd. Company.
- Since all companies are registered with the ROC, details of any Private Limited Company is available for public viewing on the MCA portal at a nominal fee.
- Trading of the shares of a PLC cannot be done on a public platform. Therefore, there is a lower risk of any kind of hostile takeover of the shares of the company.
- A Pvt. Ltd. A company is unaffected by the death of any of its member. It enjoys a continued existence. For instance, if you are the Director of a PLC and, due to certain reasons, are incapacitated to serve as the Director, then a replacement will be appointed in your place who will continue the functioning of the company.
All India ITR has experienced professionals, who can help you register your very own Private Limited Company in no time. We take care of everything from obtaining the necessary documents to e-filing the forms on the MCA web portal. Let’s talk a little bit about how we can help you register a PLC:
- In order to serve as the Director of a Private Limited Company, one of the primary documents you will need is the Digital Signature Certificate (DSC) and a Director Identification Number (DIN). Our experts will take care of this for you. All you need to do is, provide us with your personal identification documents.
- After acquiring your identity as a Director, we will focus on getting you the desired name for your company. The proposed name for a PLC is reserved on the MCA web portal called RUN (Reserve Unique Name). You must keep in mind that the name of the company should be followed by the suffix PLC or Pvt. Ltd. or Private Limited.
- Then we will draft the Articles of Association (AoA) and Memorandum of Association (MoA) for your company. This mainly consists the rules and regulations for your company.
- The next step in the incorporation, that is the filing of SPICe form which contains the details of the company, such as particulars of the Directors and Shareholders, the address of the registered office. The SPICe form needs to be submitted with valid ID and address proofs along with the AoA and MoA.
- Once we get the application for your company registration approved by the ROC, we will get you the Certificate of Incorporation which will state the establishment of your Private Limited Company.
You can buy our plan to get your Private Limited Company registered now! To know more about the documents required for the incorporation and the annual compliance requirements of a PLC, refer to our guide on Pvt. Ltd. Company.