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Private Limited Company is the most prevalent and popular
type of corporate legal entity in India. Private limited company registration is
governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies
Incorporation Rules, 2014. To register a private limited company, a minimum of two
shareholders and two directors are required. A natural person can be both a director
and shareholder, while a corporate legal entity can only be a shareholder. Further,
foreign nationals, foreign corporate entities or NRIs are allowed to be Directors
and/or Shareholders of a Company with Foreign Direct Investment,
making it the preferred choice of entity for foreign promoters.
Unique features of a private limited company like limited liability protection to
shareholders, ability to raise equity funds, separate legal entity status and perpetual
existence make it the most recommended type of business entity for millions of small
and medium sized businesses that are family owned or professionally managed.
Rahul Corporate Services can help you register a private limited company, one person
company, Nidhi company, section 8 company , producer company or Indian subsidiary.
The average time taken to complete company formation is about 10 - 15 working days,
subject to government processing time and client document submission.
The concept of One Person Company in India was introduced through the Companies Act, 2013
to support entrepreneurs who on their own are capable of starting a venture by allowing
them to create a single person economic entity. One of the biggest advantages of a One
Person Company (OPC) is that there can be only one member in a OPC, while a minimum of
two members are required for incorporating and maintaining a Private Limited Company or a
Limited Liability Partnership (LLP). Similar to a Company, a One Person Company is a
separate legal entity from its promoter, offering limited liability protection to its sole
shareholder, while having continuity of business and being easy to incorporate.
Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with
limited liability protection, a OPC does have a few limitations. For instance, every One
Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the company -
who will become the owner of the OPC in case the sole Director is disabled. Also, a One
Person Company must be converted into a Private Limited Company if it crosses an annual
turnover of Rs.2 crores and must file audited financial statements with the Ministry of
Corporate Affairs at the end of each Financial Year like all types of Companies. Therefore,
it is important for the Entrepreneur to carefully
consider the features of a One Person Company prior to incorporation.
SURYA CONSULTANCY SERVICES SERVICES can help you register a private limited company, one person
company, Nidhi company, section 8 company , producer company or Indian subsidiary. The
average time taken to complete company formation is about 10 - 15
working days, subject to government processing time and client document submission.
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