How to Start a Private Limited Company in Jaisalmer?

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How to Start a Private Limited Company in Jaisalmer

A private limited company in India is represented under the Ministry of corporate issues (MCA). Registering a company is simple as it is done totally online. To register a company in India at least two individuals are needed to go about as directors and investors. To register a Private limited company in India the Director’s PAN card, address confirmation, and the bank statement are needed with the location verification of the registered office.

Table of Contents

What is a Private Limited Company?

Section 2 (68) of the Companies Act, 2013 defines a private company as:

“A company having a minimum paid-up share capital as may be prescribed, and which by its articles,

  • restricts the right to transfer its shares;
  • except in case of One Person Company, limits the number of its members to two hundred;
  • prohibits any invitation to the public to subscribe to any securities of the company.”

Features of Private Limited Company

Since you know what a private limited company is, the subsequent step is to know the features of such a company:

Membership: Like some other company, at least two shareholders are needed to begin such a company. In any case, since it stays a little entity, there is likewise the maximum cap on the number of members fixed at 200. There is likewise a prerequisite of two directors to run the company

Limited Liability structure: In a private limited company, the risk of every member or shareholder is limited. Accordingly, even on account of loss under any conditions, the investors are responsible to sell their own assets for repayment. Nonetheless, the personal and individual assets of the investors are not at risk.

Separate legal entity: This is a separate legal entity and proceeds in never-ending progression. This implies that regardless of whether every one of the members die, or the company becomes bankrupt, the company actually exists according to the law. The existence of the company will be perpetual, not impacted by the existences of its investors or members except if dissolved through a resolution.

Least paid-up capital:  A private limited company needs to have and keep a minimum paid-up capital of Rs. 1 lakh. It could go higher, as recommended by MCA from time to time.

Requirements to start a Private Limited Company in Jaisalmer

Each business has its own provisions of prerequisites before it is formed. The prerequisites for registering this are as expressed underneath:

  • Members and directors: As referenced above, to get legitimately registered, a private limited company should show a minimum number of two and a maximum number of 200 members. This is a legal necessity as prescribed by the Companies Act 2013.

The directors should meet the accompanying conditions:

  • Every one of the directors ought to have a DIN  which is given by the Ministry of Corporate Affairs
  • One of the directors should be an occupant of India, and that implies he/she ought to have remained in India for at least 182 days in the past calendar year

Name of the company:  Choosing the name of the company is frequently a technical task. A private limited company is needed to cover three aspects while choosing a name for it:

  • Name
  • The activity to be carried
  • Mentioning ‘Private Limited Company’ toward the end.

Registered office address:  After the company has been registered, the permanent location of its registered office should be filed with the registrar of the company. The registered office of the company is the place where the company’s principal issues are being led and where every one of the files is placed.

Obtaining other documents:  For the electronic submission of documents, each company should get a digital signature certificate that is utilized to check the legality of documents. Also, in a company employing professionals (secretary, sanctioned bookkeeper, cost bookkeeper, and so forth) for differed exercises, certifications by these professionals is fundamental

Advantages of Private Limited Company

Following are the advantages of a Private Limited Company:

Limited responsibility: In a private limited company, there is a limited obligation, and that implies the members of the company are not at risk of losing their personal assets. If the company dissolves, the investors are responsible to sell their assets for payment.

Less number of investors: Unlike a public company that requires seven shareholders, a private limited company can be begun with only two shareholders.

Ownership: As the company’s shares are owned by financial investors, authors, and executives, the proprietors are at the freedom of transferring and selling to other people.

Uninterrupted existence: As referenced prior, the company remains a legal entity until it is lawfully closed down, the company runs even after the death of members.

Disadvantages of Private Limited Company

One of the disadvantages of Private Limited Company is the compliance formalities for winding up. It often winds up getting excessively muddled and time consuming.

Documents required to start Private Limited Company in Jaisalmer

The documents required for a private limited company are:

  • ID proof: PAN card and passport of Indian and foreign directors, respectively
  • Address proofs: Ration card or Aadhar card or driver’s license or voter ID
  • Residence proofs: Bank statement or electricity bill of the premise
  • Notarized rental agreement
  • NOC from the property owner
  • A copy of the sale deed or property deed (for an owned property)

How to Register a Private Limited Company in Jaisalmer?

Steps to register a Private Limited Company in Jaisalmer:

  • Apply for DSC
  • Apply for DIN
  • Apply for name availability
  • File E-MOA and E-AOA
  • Apply for PAN and TAN
  • Certificate of Incorporation by ROC
  • Open a bank account on Company’s name

Registration of private limited Company

Final Words

A private company is any registered business that doesn’t issue shares to general public. When a company has its first initial public offering, it opens up to the world, and anybody can transfer shares. Being a public company brings added risks and responsibility. Staying in a private company reduces or eliminates these requirements.

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