CS (DR) ASHUTOSH MISHRA Mob no, 9999979398
INCORPORATION OF A PRIVATE LIMITED COMPANY
A Private limited company is considered to be one of the most popular form of business now a days, it can be formed only with the two persons who can be Director/ subscriber/shareholder of the company i.e. the same person can be Director/subscriber/shareholder of the company. There is no minimum paid up capital requirement.
Section 2 (68) of Companies Act 2013 defines Private limited Company as, a company which by its article;
- Restricts the right to transfer its shares
- Limits the number of its member to 200
- Prohibits any invitation to public to subscribe for its shares
Advantages:
- Separate legal existence
- Limited liability
- Easy to raise funds
- Great Business recognition
- Management & ownership is different
- Only two person required
- No minimum paid up share capital requirement
- Cost effective
- Less formalities
- Private equity
Limitations:
- It cannot issue shares to the public at large.
- It is a closely held company
- Number of shareholders cannot exceed 200
- There is a limited scope of raising money unlike public company
Privilege available to private company
- No requirement of secretarial audit
- No requirement of independent director
- No need of women director
- No need formation of various committee such as audit committee, remuneration and nomination committee etc.
- Maximum ceiling of managerial remuneration do not apply
PROCEDURE FOR INCORPORATION OF PRIVATE LIMITED COMPANY:
Earlier there was Spice 32 form for incorporation of a new company but Now we have SPICE+ E form for incorporation of a new company. It is a web based form. There are two parts of this E-form. Part A & Part B
Part A is used for Reservation of name of the company while Part B is used for Incorporation of Company. Earlier RUN was used for reservation of name of the company. However if one is confident that that the proposed name of the company is not identical or resembles with any other existing name then Both the Part can be filled simultaneously.
Following is the procedure for incorporation of private limited company:
- Apply for name reservation in Part A of Spice+ web based form
- Apply for DSC of directors
- After the approval of name apply for incorporation of company in PART B of Spice+
- Fill all the relevant information as required in the form
- Collect id & address proof of all the directors
- Pan card details of all the directors
- Registered office address along with proof
- If registered office address is rented then rent agreement & NOC required from the landlord
- If owned then proof of ownership is required
- Prepare Objects of the company
- Photo of all the directors
- Prepare of spice MOA & AOA
- Prepare Agile pro form
- After filing all the forms generate PDF copy & save the same in to drive
- Upload E-forms on the MCA portal
