A Private Limited Company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the number of shares respectively held by them. Shares of Private Limited Company cannot be publicly traded. This is one of the common forms of Business for start ups. Major benefit of Private Limited Company is that, once a Private limited Company is registered, there can not be other private limited Company or public limited Company.
A minimum number of two and a maximum number of 200 members or shareholders are required as per the companies’ act 2013 before registration of the company.
A minimum number of two directors is required for registering the private limited company. Registered office address
The advantages of operating as a sole proprietor are that you don’t have to do anything to establish your business. It automatically exists as soon as you start to sell something. You also don’t have a second set of business tax forms to complete; a Schedule C and form 1040 are all the IRS requires each year, plus the SE for your self-employment taxes. Without that extra taxation, sole proprietorships have the lowest tax rates. And because you are the sole owner, you have complete control over your business and how it is run.
On the flip side, the simplicity of operating a sole proprietorship is also a liability. Because you are your business, if your company is sued, you are personally responsible for any judgment. Such a loss could be catastrophic to your financial health. Because your business is built around you, it is also harder to raise money from investors or to secure a business loan; you may be able to qualify for a personal loan that you can then use for business purposes but, once again, you are personally liable if the business fails. Documents required for registration of Proprietorship Firm – Self-attested copy of PAN Card of proprietor – Self- attested copy of Aadhar Card of proprietor – Details of the saving or current bank account
While going for the registration of the company, the owner should provide the temporary address of the company until it does not get register. However, when the company has been registered then its permanent address of its registered office should be suited with the registrar of the company. The Registered office of the company is where companies’ main affairs are been conducted and where all the documents are placed. Obtaining digital signature certificate In today’s modern world everything is done online. All documents are submitted electronically and for that, every company must obtain a digital signature certificate which is used to verify the authenticity of the documents. A digital signature is
obtained by all the directors which are marked on all the documents by every director.
