Private Limited Company in Bihar

Private Limited Company Registration in Bihar

Private Limited Company is considered to be one of the most popular legal organizations among small, medium, and private large businesses in India. It is due to its various benefits. It can be chosen by anyone who wants to build a scalable business. You can start Private Limited Company Registration Process with a minimum of two members and a maximum of two hundred members.

A private limited company is a type of privately owned small business entity, with the owners' liability limited to the shares they own. The company is determined to hold 200 or fewer shareholders. Its share is prohibited from being publicly traded. Private Limited Company Registration in India is mandated by the Ministry of Corporate Affairs (MCA), Companies Act 2013, and Companies Corporation Rules, 2014.

You should understand that a private limited company shareholder has limited liability towards creditors. It is limited only to the unpaid amount of the shares or stocks. Most important thing is that In case of any default, the bank/creditor can sell only the assets of the company. But they don’t have the right to sell the personal assets of the directors and shareholders. Start-ups and growing businesses always choose Private Limited Company Registration in India. Because it helps to get external funding easily and limits the liability of shareholders. Apart from that, it also attracts top talent staff by offering employee stock options. Since these workers are required to hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they are viewed with more certification than sole proprietorships or general partnerships.

Our Private Limited Company Registration Package

• Company Name Searching and Approval
• 2 Digital Signature Certificates (DSC) for Director/Shareholder.
• Director Identification Number (DATN) for 2 directors.
• Certificate of Incorporation/Registration
• Company PAN and TAN
• MOA ie Memorandum of Association and AOA Articles of Association
• Opening Bank Account
• Employees' State Insurance Corporation Registration (ESCIC) and Employees' Provident Fund Organization Registration (EPFO)
• GST Tax Registration (Condition Apply)

Features of Private Limited Company Registration in India

Membership

At least 2 members/shareholders are required to start a Private Limited Company registration in Bihar. Any person or corporate body above the age of 18 years can be a member or shareholder in a private limited company. The maximum number of members/shareholders of a limited company can be up to 200 individuals.

Directorship

A Private Limited Company requires at least 2 directors to manage the conduct and affairs of the company. The directors may be existing shareholders of the company or maybe a person other than a shareholder. There can be a maximum of 15 directors in any private limited company. For your kind information, Every Indian company must ensure that they have 1 director who is domiciled in India.

Restriction of Transfer of Shares

You must be remembered that Members/shareholders of a private limited cannot transfer their shares publicly. There may be restrictions on the transferability of these shares.

Foreign Direct Investment(FDI)

A foreign national, foreign corporate entity, NRI or OCI is permitted to be a director and shareholder of a foreign direct investment company, making the private limited company the preferred choice for foreign managers.

Prohibition on Inviting Investments from the Public

A Private Limited Company can not publicly invite to purchase shares or any other type of terms. It is also not permitted to accept the amounts from the public. You can only accept deposits from its members, directors, or relatives of directors.

Private Limited Company Registration in India Advantages

Separate legal entity

Once a company is registered, it is known as a separate unincorporated ie artificial person in the eyes of the law. The rights of each member or shareholder are limited to a non-transferable amount of stock. For a better understanding, you can suppose that if a company suffers a loss under any circumstances, only the company assets can be sold to manage the loss. Shareholders are not liable to sell their assets to make up for it. So the personal property of the shareholders or directors is not at risk.

Easy to register, manage & run

Private Limited company can be registered completely online with less paperwork. You can complete the legal process of registration within 7-12 working days. It provides control in operations like adding new directors, allotting new shares, ESOPs, and other various other features.

No minimum capital required

Before the Companies Amendment Act 2017, the minimum requirement of capital was Rs. 1 lakh for private limited companies. But after the Companies Amendment Act 2017, a company can be formed even with minimal capital (eg Rs.2000)

Easy allocation of ownership and management

Any business requires funds to grow. To get that funds from Venture Capitalists (VCs), Angels, etc, your company should be registered as a private limited. Because a private limited company can make them shareholders and they can be offered a seat on the board of directors. Whereas L.L.P. OPCs will need to have investors as partners and OPCs cannot accommodate additional shareholders.

Easy to dissolve or wind-up

Formation of a Limited Company provides an opportunity to those partners who do not have any assets or scatter and want to stop business operations due to some specific reason.

Preferred by banks, VCs & investors

Independent auditor audits private limited company’s book every year. So Most banks, VCs, and investors prefer them over other traditional business forms.

Minimum Entry for Private Limited Company Registration in India

• Minimum 2 Directors/Shareholders
• Make sure that at least 1 director should be a resident of India
• Minimum capital Rs 2
• DIN and DSC for all Directors/Shareholders

Private Limited Company Registration Process

1. Application for Name Approval : Applicant Will have to provide 2 different names. Those proposing the company name will be submitted to MCA for Approval.MCA will approve one of the names out of them. You should provide a unique name that is related to your company business. The company name should end with the words "Private Limited".

2. Application for Digital Signature Certificate (DSC) : Once the company name approval form is submitted, we will also apply for the digital signature certificate (DSC) of the directors for fingerprint signing. If the directors/shareholders already have DSC, this step can be skipped.

2. SPICE+ forms, MOA, and AOA Final Submission : After getting enrolled and having DSC, we must prepare and submit Conference Application in Spice+ form along with the Memorandum of Association (MOA), Articles of Association (AOA), and Agile Form for Past Information.

2. Get Incorporation Documents : Incorporation Certificate proves that your company has been registered. Mostly you will have to wait for 3- days for the Incorporation certificate. You will also get PAN, TAN, ESIC, EPFO, and Professional Tax registration certificates and an incorporation certificate.

2. Opening of Bank Account : After getting all certificates, now Certificate of Incorporation Certificate, MOA, AOA, PAN, TAN, and other necessary documents can be submitted to the Bank for opening the current bank account and commencing business operations.

Private Limited Company Registration Process

Documents Of Directors & Shareholders to be Submitted - Following are the documents that are required to be submitted by all the directors and employed persons of the company. All documents and documents submitted are present.

• Scanned copy of the PAN card
• Scanned copy of Aadhar Card/Voter ID/Passport/Driving License
• Scanned copy of latest Bank Attachment/Telephone Bill/Post-paid Mobile Bill/Electricity Bill (Address proof should be recent and not more than 2 months old)
• Scanned passport-size photograph

Registered Office Proof– The Private Limited Company should have its registered office place in India. Can be an office address or business premises. Address proof should be recent and not more than 2 months old. List of documents submitted as registered office address proof is written below -

• Scanned copies of utility bills like electricity bills/ mobile post-paid bills/ landline post-paid bills/ gas bills/ water bills
• Scanned copy of NO OBJECTION CERTIFICATE from the owner of the property or whose name appears on the bill to such effect.

FAQ

Do I need to be physically present during the process?

No, company registration is a completely online process. All required documents are taken electronically, so you will not need to be physically present. You all just send us scanned copies of the mandatory documents and forms.

How do I name a Private Limited Company?

For incorporation of any company, a distinctive name of the company must be kept secret with the Ministry of Corporate Affairs (MCA). The name should be as per the guidelines set by MCA.

I am the sole director and shareholder; Can I form a Private Limited Company on my own?

No, there should be a minimum of 2 Directors/Shareholders for incorporation of a Private Limited Company. However, a person alone can register a One Person Company (OPC).

Can a salaried person or a person in employment become director of a Private Limited Company?

Yes, a salaried person or a person carrying a job in the business can become a director of a Private Limited, LLP, or OPC. However, if he needs to check any registered settlement, he allows it. In many cases, employers are largely limited by the fact that their employees are directors in another company. However, if there is a restriction on becoming a director of a company, then any person can hold shares in a company and alternatively become a shareholder./p>

Can a minor become a director or shareholder of a private limited company?

No, a minor cannot become a director or shareholder in the company. While a minor can become a member/shareholder of a company by way of gift and/or inheritance, he cannot enter into an agreement to purchase shares.

What are the Memorandum of Association (MOA) and Articles of Association (AOA)?

A Memorandum of Association (MOA) is a document that lays down the constitution of a company and hence assumes the formation of that company. It defines the scope of the company's activities and its interaction with the outside world.

Articles of Association (AOA) state the arrangements or articles of association of the company that governs the management and internal affairs and conduct of its business. Both documents are required to be registered with the Companies Authority at the surface of the corporation of the company.

While incorporating a Private Limited Company, what is the maximum number of employees and directors I can have?

You can join a Private Limited Company with a maximum of 200 formations and 15 managers. However, only 3 DYNAs can be obtained through the Spice+ form, so if the remaining managers do not have a DYNA, they will be admitted as directors after incorporation of the company.

Can I register a Private Limited Company at my house or residential unauthorized?

Yes, you can register the company on your registered account. The result of your house accommodation will be the bill submission along with the certificate from the owner of your premises.

What is the Director's Identification Number (DIN)?

A unique identification number is that of a person who is employed as a director of a company, in respect of a new company an application for a maximum of 3 DINs shall be made by the Authority in SPICe+ form at the time of its incorporation.

Is GST mandatory for Private Limited Companies?

Registry registration is important for those documents that in fact, the total turnover exceeds the demarcated limit or a business that makes the inter-state supply of jobs/services, etc. prescribed turnover limit or any other effect prescribed under the Registry Registration.

Can I change the address of the company's registered office later?

Yes, once the company registration is done, you can change the company registration address by following the procedure prescribed as per the law.