Today in this Guide we are discuss about Private Limited Company Requirements. So In this 2019 there are lot of the changes in the Private Limited Company Registration from DSC to DIN or name approval etc so Let’s understand about the Private Limited Company Requirements.
Private limited Company Requirements
Checklist for the Private Limited Company Requirements –
Directors Identification Number(DIN) for Pvt Ltd Company Requirements
As per section 153 of the Companies Act 2013, every person who proposes to be the Director of a company shall mandatorily have an 8 digit unique code i.e. Director Identification Number (DIN) registered in his name.
DIN once allotted is valid for a lifetime
Digital Signatures Certificates (DSC) :-
As MCA is a digital platform to file various forms and other related documents, thus there is a need to sign such forms digitally.
Thus any person/director who is so authorised to sign forms on or behalf of the company shall have his Digital Signature Certificate.
Directors for Pvt ltd Company Requirements
Director is the person who controls and manages the day to day affair of a company, who acts both as an agent and trustee for a company.
Number of Directors in a company shall be Minimum 2 and Maximum 15 in case of Private Limited Company Registration
Promoters/Shareholders
Promoter: Is the person who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise.
Shareholder: Is a person who subscribes to the shares of the company and participates in the profits of the company, also known as member of the company.
A private limited company can have a minimum of 2 and maximum of 200 member in a company.
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Company Name
Name of the company is the most crucial and important aspect of Incorporation, as it will be the identity of the company. Thus in order to choose the name of the company one should seek the understated checklist.
- Does while proposing name of the company the name shall be unique.
- The name shall depict the nature of business activity
- Don’t while proposing name of the company
- Shall not be similar to that of name already registered.
- Shall not be a registered trademark.
- Shall not fall in the category of Emblems and Name (Prevention and Improper Use) Act, 1950.
- In some cases the name so proposed needs prior approval of Stock Exchange Board of India (SEBI), Reserve Bank of India. Thus if proposed name falls under the given category then approval shall be obtained.
Registered Office
- The Registered Office of a company is that place which tends to be the official address of the company also where the company so proposes to work and receives formal notices from government departments, investors, banks, shareholders, general public or any other authority.
- The Registered Office is required for understated purposes:
- To convene all the shareholders and board meetings
- The Jurisdiction of Registrar of Companies is based on the registered office of the company.
- All the necessary books of accounts and government records are to be maintained at its registered office.
- While selecting the place for registered office one should keep in mind:
Convenience of the Management Convenience of the Administration Stamp Duty* so imposed by the jurisdiction over the place of registered office.
* STAMP DUTY IS SUBJECTED TO THE JURISDICTION WHERE THE REGISTERED OFFICE OF THE COMPANY FALLS
Memorandum & Articles of Association
Memorandum of Association is that document of a company which lays down the foundation of the company onto which the company constructs its structure. It has been divided into Six major clauses.
Name Clause: States the name of the company.
State/ Situation Clause: States the registered office of the company.
Object Clause: Describes the objects/ Business activity of the company and are divided into
Main Objects
Ancillary Objects
Other Objects
Liability Clause: States the nature of liability of the members of the company i.e. limited or unlimited.
Subscription: Details of the subscribers to the memorandum of associations of the company
Capital: Whether or not company is having share capital.
Articles of Association
The AOA of the company defines its bye laws which helps to regulate the internal affairs and code of conduct of its business.
It defines;
Duties
Rights and Powers of governing body
Directors Remuneration
Procedure of Transfer and Transmission of shares
Power of the Board of Directors of the company.
Minimum Share Capital For Private Limited Company Requirements
The Share Capital of a company is basically divided into three categories
Authorised
Issued
Subscribed
Authorised Capital: There is no limit onto the maximum amount of authorised capital but should not be less than.
Private Companies – Rs.1 Lakh as per the companies act 2013.
Paid Up Capital: Paid up capital is that part of Authorised Capital which has been allotted to the shareholder.
The paid up capital rules has been changed now. For the more details. Just Checkout Here about Minimum Capital Required for Private Limited Company in India