sharma
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Company Profile
Established in 2021, Sharma Associates is a full-service firm offering affordable accounting & tax solutions to individuals and local and international businesses.
Our Services
Company Formation
We build all types of company
Taxation
We deliver thoughtful investment advisory services
REGULATORY SERVICES
We prepare everything you need for your tax return
What is a private limited company?
In India, a private limited company is a privately held entity with limited liability, and it ranks among the nation's most favored business structures. This popularity is primarily attributed to its numerous advantages, including limited liability protection, ease of formation and maintenance, and its status as a distinct legal entity. A private limited company enjoys legal separation from its owners and necessitates a minimum of two members and two directors for its operation. Here are the key characteristics of a private limited company in India:
- Limited Liability Protection: Shareholders of a private limited company are liable only to the extent of their shareholding. Their assets remain safeguarded, even in cases of financial setbacks incurred by the company.
- Separate Legal Entity: A private company possesses its own distinct legal identity. It can own property, engage in contracts, and initiate or defend legal actions under its unique name.
- Minimum Number of Shareholders: A private company must have a minimum of two shareholders and cannot exceed 200 shareholders.
- Minimum Number of Directors: A private limited company necessitates a minimum of two directors. At least one of these directors must be an Indian citizen.
- Minimum Share Capital: The company must maintain a minimum paid-up capital of Rs. 1 lakh or a higher amount as specified.
- Name of the Firm: The private limited company's name must conclude with the words "Private Limited."
- Restrictions on Share Transfer: The right to transfer shares within a private limited company is restricted. Shares can only be transferred with the approval of the Board of Directors or following the company's Articles of Association.
- Prohibition on Public Invitation: Private limited companies are prohibited from inviting the public to subscribe to their shares or debentures.
- Compliance Requirements: Private limited companies are obligated to adhere to various legal and regulatory obligations, including maintaining proper financial records, conducting annual general meetings, and filing annual returns with the ROC.
In summary, the attributes of a private limited company registration process in India make it a favored choice among entrepreneurs, owing to its advantageous features and relatively straightforward structure.
Company Formation
Types of Private Limited Companies:
- Company Limited by Shares: Shareholders' liability is limited to the nominal share amount mentioned in the Memorandum of Association.
- Company Limited by Guarantee: Member liability is limited to the amount of guarantee specified in the Memorandum of Association. This guarantee is invoked only during winding up.
- Unlimited Companies: Members of unlimited companies have unlimited personal liability for the company's debts and liabilities. However, they are still considered a separate legal entity, and individual members cannot be sued.
Advantages of a Private Limited Company
A Private Limited Company Incorporation is one of India's most popular business structures. It offers several advantages and some disadvantages, let us explain.
- Limited Liability: Shareholders' responsibility is restricted to the extent of their capital contribution, safeguarding personal assets from the company's financial obligations and liabilities.
- Distinct Legal Identity: A Private Limited Company possesses an independent legal identity distinct from its proprietors. It has the capacity to own assets, engage in contractual agreements, and initiate or defend legal actions under its own name.
- Continuous Existence: The company's existence persists irrespective of shifts in shareholders or directors. Its existence is not contingent upon the lifespan of its associates.
- Ease of Funding: Raising capital by issuing shares to investors, venture capitalists, or angel investors is easier. This structure attracts external investment.
- Tax Benefits: Private Limited Companies may qualify for various tax benefits and exemptions, making them tax-efficient entities.
- Credibility and Trust: Having "Pvt. Ltd." in your company name often instills more confidence and trust in customers, suppliers, and partners.
Disadvantages of a Private Limited Company
- Compliance Burden: Face regulatory demands, including financial reporting, filings, and audits.
- Complex Setup: Process and cost for managing are higher than more superficial structures.
- Share Limits: Restricted share transfers; max 200 shareholders in India.
- Public Disclosure: Financial info is publicly viewable, impacting privacy.
- Exit Complexity: Selling or leaving is more complicated than with other structures.
- Slower Decisions: The involvement of shareholders and directors may slow choices.
Requirements for Registering a Company in India:
Directors and Members:
A minimum of two directors and 200 members are required for Private Limited Company Registration in India, as per the Companies Act of 2013.
Directors must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs (MCA).
At least one director must be an Indian resident, having spent 182 days in India in the previous calendar year.
Client Testimonials
aarush logistics
he provide all work on time withe the fully accuracy and panchuality
ket
all give me support on time on call or any desk
JAIDEV PAREKH
he gives much satisfuction
Expertise, commitment, and value. It's our mission to consistently provide these to our clients.
shivam sharma, CEO
Let's work together.
Our Branches
Delhi , Gurgaon , Gorakhpur , Loni
Email Address
sharmajib2b@gmail.com
Phone Number
+91 9560537608