Private Limited
Private Limited Company is the most sought after type of corporate legal organization, it is a type of business organization in “private” ownership. It is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014.
A minimum of two share holders and two directors are required to register a private limited company. A corporate legal body can only be a shareholder, while a natural person can be both a director and a shareholder.
Furthermore, any foreign national, foreign corporate bodies or NRIs can be a director or shareholder of a company with foreign direct investment.
Key features of a private limited company- Its limited liability protection to shareholders, a separate legal entity status
- Ability to raise equity funds
- Perpetual existence
It is mandatory for all companies that are private as a private limited company after its name.
The process involved for registration is announced by MCA , the incorporation process simplified by bringing in the Reserve Unique Run (RUN) form for name approval process and hence reducing the fees for incorporation for private limited companies.
Acceptable name for company or LLP according to Company Act, 2013 and LLP Act, 2008 Procedure for checking name availability and forming an unique name.