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DETAILS

A 'Private Company' is a limited company formed under Companies Act, 2013 with minimum of 2 Shareholders and 2 Directors. The maximum number of members in a private company is restricted to 200. Shareholders could be individuals, companies or LLPs, but only individuals can become directors of a company. The name of the company should end with the words 'Private Limited'. A 'Private Limited' company is the most common incorporated business organization in India. It is generally called as a 'Private Company'.

DIFFERENCE BETWEEN PUBLIC AND PRIVATE COMPANY AS PER COMPANIES ACT, 2013
Private Limited Company Public Limited Company
Minimum Capital- NIL
Right to transfer the shares: Restricted		 minimum paid-up capital of Rs 5 lakh or such higher amount as prescribed under the act.
Right to transfer of shares are allowed
Minimum members 2 (Two),
Maximum members 200 (Two Hundred) 		Minimum members 7 (Seven),
Maximum members No Limits
Public offer is not applicable and no requirement of dematerialization of securities In case of public offer of securities, the securities have to be in Dematerialized Form
Quorum of Meetings
Two members personally present 		Quorum of Meetings
Five in case of Members up to 1000;
Fifteen in case of Members more than 1000 up to 5000;
Thirty in case of Members exceed 5000.
Retire by rotation
Not Applicable 		At least two-third of total number of directors be liable to retire by rotation and eligible of being re-appointed in AGM
Requirements for Registration

A. SHAREHOLDERS / DIRECTORS / SHARE CAPITAL
1. No. of Shareholders - 2 (Individuals / Companies / LLP’s)
2. No. of Directors - 2 (Only Individuals)
3. Authorised Capital - No Minimum Requirements
4. Paid Up Capital - No Minimum Requirements
Documents Required from Shareholders & Directors
The first Subscriber to the memorandum of Association and First Directors have to provide following documents for Incorporation:
1. Identity Proof
a) Permanent Account Number (PAN) Card (Mandatory for Indian Nationals)
b) Passport / Driving License / Voter Identity Card
c) Mobile number
d) Mail ID
2. Address Proof (Any one of the Document not older than 2 months)
a) Telephone Bill / Mobile Bill OR
b) Electricity Bill OR
c) Bank Statement and
d) Aadhar card
Important Notes on Document Requirements:
a. All the Copies of documents must be Self Attested by the applicant
b. Telephone Bill / Mobile Bill/Electricity Bill / Bank Account Statement must be in the name of applicant and should not be older than 2 months.
c. In case of documents that are in languages other than English, it should be translated to English with the help of a professional translator, carrying his details (name, signature, address, and seal)
d. If the proposed director has a valid Director Identification Number (DIN) and if he or she is a proposed shareholder, the address in MCA records and should match with present address proof.

Documents required as Proof of Registered Office Address as under:

a. Address Proof:
Electricity Bill, Telephone Bill (Fixed Line Only) or Gas Bill (not older than 2 months) in the name of the Owner of Address.
Tax Paid Receipt or Copy of Registered Sale Deed
b. No-Objection letter from the Owner of Address to use the address ad Registered office of the Company.
c. Rent Agreement/lease deed if the premises is taken on rent or lease.
d. Ownership Proof if the premises is held by any of the director or subscriber and he is not charging the rent.
Section 10 A of the act says that the director of a company needs to file INC 20A with ROC stating that every subscriber to MOA have paid the value of shares agreed to be taken. A bank statement also needs to attached. The form needs to be filed within 180 days of incorporation. If found ok the Registrar will issue Certificate of Commencement of Business.

FAQ

A Registration of Private Limited Company is one that has separate legal entities following the regular succession, with a benefit of limited liability for its shareholders.

The basic process for registering a Private Limited Company in India is as follows: 1. Get Digital Signature Certificate (DSC) 2. Self-Attest the Documents for Private Limited Company Registration including AoA, MoA and utility bills. 3. File with form SPICE+, this form has outlined for streamlining many processes including getting DIN, Name Reservation, Incorporation, PAN application, TAN number.

Advantages of Private Limited company include having a Limited Liability (Members of the company are not personally affected in case of a dispute). Additional benefits include Easy fund raising, Expansion, Tax Advantages, Dual Relationship with the parties, etc.

Limited refers to a public limited company whereas private limited refers to a private limited co. The suffix limited means that the company is limited by shares. These shares are privately owned in the case of a private ltd co and publicly owned in the case of ltd co.

A limited company is a completely separate entity from its owners. Everything from the company bank account, to ownership of assets and involvement in tenders and contracts is purely company business and separate from the interests of the company's shareholders.

YES a private limited company can list ONLY its Debt securities on stock exchanges in india. As companies act 2013, Section 2 (52) ―listed company means a company which has any of its securities listed on any recognised stock exchange; Any of its Securities includes debt instruments.

A company can accept unsecured loans from a director and their relatives with or without interest. For a private company, there is no limit on the amount that can be borrowed by a company from its directors or their relatives. ... Loan is provided either by promoters themselves or by their relatives or by both.

Minimum two individual directors are required Companies Act, 2013, has introduced the concept of One Person Company (OPC) private limited, in which a single individual can start a private limited company. Thus, if you plan to incorporate OPC, you can incorporate it with only one director.

No, a private Limited company cannot accept loan from outsiders. ... However, it can accept loan from his directors. If you accept any amount from any outsider, then it shall be treated as deposit as per the Companies Act, 2013 and you need to comply with all the deposits rules.

The One Person Company (commonly known as OPC) is the type of entity which is owned by a single person. ... The OPC is also a type of Private Limited Company, but with little distinctness. Similar to Private Limited Company, OPC Registration and its operations are governed by the Indian Companies Act, 2013.

GST registration is mandatory for: Companies incorporated in special category states exceed the limit of annual turnover of Rs. 10 lakhs. ... Even a new startup registered under startup India scheme needs mandatory GST registration.