Section 2(68) of the Companies Act, 2013, 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 for any securities of the company.
In simple terms, company which does not publicly trade its shares and the liability of each member is limited up to the extent of amount invested in the company.
What is the Eligibility of Private Limited Company?
- Minimum 2 Directors and Maximum up to 15 Directors are required.
- At least one Director shall be an Indian Resident.
- It shall have minimum 2 Members or Shareholders and maximum up to 200.
- Minimum Authorized Share Capital of Rs. 1 Lakh.
Benefits of Private Limited
- Limited liability of Directors.
- Separate legal entity.
Process for incorporation
- Minimum 2 Directors and Maximum up to 15 Directors are required.
- At least one Director shall be an Indian Resident.
- It shall have minimum 2 Members or Shareholders and maximum up to 200.
- Minimum Authorized Share Capital of Rs. 1 Lakh.
Documents Required
- PAN and Aadhar Card of Directors and Subscribers.
- Voter ID card or Driving License of Directors.
- Latest Bank Statement of Directors.
- Passport Size Photographs of Directors.
- Registered Office Address Proof.
- Copy of Utility Bills (Not be older than 2 months).
- Directors Consent in Form DIR-2.
- Signature Specimen of Authorized Signatory.
