Limited Liability Protection
Private limited company’s shareholders are liable only to the extent of their capital invested. This means, the members of the company are accountable for the debts only to the extent of shares they hold. Their personal assets remain safeguarded, even in cases of any business loss incurred by the company.
This means if the company incurred any business losses, then shareholders are not personally liable to sell their personal assets for repayment.
Shareholders of the company are only responsible for the amount of shares subscribed or the guaranteed amount agreed upon.
Separate Legal Entity
A private limited company is a separate legal entity and is different from its members. It can own property, engage in contracts, and initiate or defend legal actions under its unique name.
Number of Shareholders
A private company must have at least two shareholders and it cannot have more than 200 shareholders.
Number of Directors
A private limited company should have atleast two directors, one of them must be an Indian citizen. It can have a maximum of 15 directors. The directors and shareholders have to furnish their proofs of identity such as PAN (Permanent Account Number) card or Aadhar card and address proof at the time of incorporation.
Minimum Share Capital
The company can start with any amount of capital. However, it has to be mentioned at the time of incorporation.
However, a private limited company must have an authorized share capital of at least 1,00,000 rupees. Paid up capital can be any amount.
Name
The private limited company’s name must conclude with the words “Private Limited.”
You can also use “Pvt. Ltd” or “(P) Ltd”.
Registered Office Address
If the office is situated on a rental space, a NOC from the owner and the rental agreement is to be submitted at the time of incorporation along with electricity bills in the name of the owner. If the office is spaced out in its own property, the property deed is to be enclosed in place of rental agreement.
Restrictions on Share Transfer
In case of a private limited company, 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.
Here are the 5 Steps we follow to register a private limited company in Odisha:
- Gather all the necessary documents for the incorporation process.
- Apply for Digital Signature Certificate (DSC).
- Apply for approval for company name from MCA.
- Drafting of Memorandum of Association (MOA) and Articles of Association (AOA) for your company.
- Uploading documents and forms for the final stage of company incorporation.
After incorporation process, your company is registered as a separate legal entity. You as a director of the company require to adhere to various compliance regulations as per our indian law in order to avoid potential fines and legal repercussions.