Company Registration and Formation Services in India

A Private Company is a body corporate formed under the provisions of the Companies Act having a distinct entity separate from that of its founders with perpetual succession. A company can either be private limited or public limited. In India, private limited companies are generally owned and managed by family members or a small group of persons. Such a company cannot raise money from the public at large. The directors and shareholders in a private company are often the same unlike a public limited company. It usually has the words 'Private Limited' at the end of its name. At Legaljini, we can help you to incorporate Private Limited Company.

An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Private Limited companies are not affected by the status of their owner when it comes to their existence. Changes within the management does not bring any affect to the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law. Death or inability to continue of owner does not hinder the proceedings of the company.

The Companies Amendment Act, 2015 has come up with an amendment that there is no minimum capital requirement for starting a private limited company. The Companies amendment Act, 2013 has removed the words “of one lakh rupees or such higher paid-up share capital”. So the private limited company can be started without any amount of minimum capital.

The greatest benefit of private limited companies is its limited liability. The liability of the company is different as from its members of a company. Liability for debts incurred by the company lies in the company itself and not on the members. If anything happen to the company, its members are personally affected.

Only two members and two directors are required to incorporate a private limited company. This gives many Entrepreneurs an opportunity to set up their own company.