A private limited company registration in Bihar is a type of business organization that is privately held and has limited liability for its shareholders. It is one of the most popular forms of business in India, including in the state of Bihar. In this type of company, the ownership is restricted to a specific group of individuals, and it cannot publicly trade its shares.
Private Limited Company registration in Patna-Section 2(68) of Companies Act, 2013 characterizes privately owned businesses. As indicated by that, privately owned businesses are those organizations whose articles of affiliation limit the adaptability of offers and keep the general population on the loose from buying into them. This is the fundamental measure that separates privately owned businesses from public organizations.
The Section further says privately owned businesses can have a limit of 200 individuals (aside from One Person Companies). This number does exclude present and previous representatives who are additionally individuals. Additionally, multiple people who own portions mutually are treated as a solitary part.
This definition had recently endorsed a base settled up share capital of Rs. 1 lakh for privately owned businesses, yet a correction in 2005 eliminated this necessity. Privately owned businesses can now have a base settled up capital of any sum.
Characteristics of Private Companies:
Least 2 and limit of 200 individuals can meet up to shape a privately owned business by presenting an application with that impact to the Registrar of Companies alongside a bought in duplicate of their Memorandum of Association and other required reports after installment of recommended charges.
The Memorandum should express the name of the organization (which ought to incorporate the words “Private Limited”), the location of its enrolled office, its items and purposes, and degree of risk of its individuals. It should likewise specify the subtleties of supporters of the Memorandum.
Necessity for Registering a Company in Bihar:
As per the law in the Company Act, 2003 for any organization to be enrolled in India, the beneath conditions must be met.
Two Directors: A private restricted organization should have no less than two chiefs and probably, there can be 15. Of the chiefs in the business, somewhere around one should be an inhabitant of India.
Extraordinary Name: The name of your business should be interesting. The proposed name shouldn’t coordinate with any current organizations or brand names in India.
Least capital commitment: There is no base capital sum for an organization. An organization ought to have an approved capital of basically Rs. 1 lakh.
Registered Office: The enrolled office of an organization doesn’t need to be a business space. Indeed, even a leased home can be the enlisted office, insofar as a NoC is gotten from the landowner.
Getting Digital signature authentication: In the present current world everything is done on the web. All archives are submitted electronically and for that, each organization should get an advanced mark declaration which is utilized to check the credibility of the reports. An advanced mark is gotten by every one of the chiefs which are set apart on every one of the records by each chief.
Professional endorsement: Professional accreditation In an organization there are numerous experts which have expected for some reasons. For integrating a private restricted organization certificate by these experts are vital. Different experts, for example, organization secretary, sanctioned bookkeeper, cost bookkeeper and so forth are expected to make their accreditation at the hour of organization consolidation.
Personality AND ADDRESS PROOF:
Examined duplicate of PAN Card or Passport (Foreign Nationals and NRIs)
Checked duplicate of Voter’s ID/Passport/Driver’s License
Checked duplicate of the most recent bank explanation/phone or versatile bill/power or gas bill
Filtered identification measured photo example signature (clear report with signature [directors only])
For the outside nationals, apostilled or authorized duplicate of the visa must be submitted compulsorily. All records submitted ought to be substantial. The home evidence archives like the bank explanation or the power bill should be under 2 months old.
Characteristics of Private Limited Company:
Members- To begin an organization, a base number of 2 individuals are required and a greatest number of 200 individuals according to the arrangements of the Companies Act, 2013.
Limited Liability- The obligation of every part or investors is restricted. That’s what it intends in the event that an organization faces misfortune for any reason, its investors are at risk to sell their own resources for installment. The individual, individual resources of the investors are not in danger.
Perpetual succession– The organization continues to exist according to regulation even on account of death, indebtedness, the insolvency of any of its individuals. This prompts unending progression of the organization. The existence of the organization continues to exist for eternity.
List of individuals- A privately owned business has an honor over the public organization as they don’t need to keep a file of its individuals while the public organization is expected to keep a record of its individuals.
Number of Directors- When it comes to chiefs a privately owned business requirements to have just two chiefs. With the presence of 2 chiefs, a privately owned business can come into tasks.
Paid up capital- It should have a base settled up capital of Rs 1 lakh or such higher sum which might be recommended every now and then.
Outline Prospectus is a nitty gritty explanation of the organization undertakings which is given by an organization for its public. Notwithstanding, on account of private restricted organization, there is no such need to give a plan on the grounds that in this open isn’t welcome to buy in for the portions of the organization.
Minimum Subscription- It is the sum get by the organization which is 90% of the offers given inside a specific timeframe. In the event that the organization can’t get 90% of the sum then they can’t start further business. If there should be an occurrence of private restricted organization offers can be dispensed to general society without getting the base membership.
Name- It is obligatory for every one of the privately owned businesses to utilize the word private restricted after its name. One of the essential strides in Company Registration is to guarantee that the organization name has not as of now been taken by another lawful substance. We can run an organization name search to actually take a look at the accessibility of the specific name in India against the MCA and brand name information base.
Frequently Asked Questions
Question: 1. What Ltd Company means?
In a Limited Company, the risk of individuals or endorsers of the organization is restricted to what they have contributed or ensured to the organization. Restricted organizations might be restricted by shares or by ensure. The previous might be additionally partitioned in broad daylight organizations and privately owned businesses.
Question: 2. How much does it cost to register a Pvt Ltd Company in Bihar?
Cost: One-time cost of around Rs. 14,000 for approved capital of Rs. 1 lakh. This isn’t a prerequisite for Private Limited Companies, as such, however all organizations in India. Every single one of them requires some administration enrollments, in light of the contribution.
A private limited company is a popular form of business organization in which the company is privately held by a group of individuals, and its ownership is restricted to a specific group of individuals. This type of company has a separate legal entity from its shareholders, and it can enter into contracts, own property, and sue or be sued in its name.
One of the main advantages of a private limited company is that the shareholders have limited liability, which means their personal assets are not at risk in case of the company’s debts or legal issues. Additionally, a private limited company has perpetual succession, which means the company’s existence is not affected by the death or departure of any of its shareholders.
To set up a private limited company, one needs to comply with various legal formalities, including the registration under the Companies Act, 2013, with the Ministry of Corporate Affairs, obtaining a Digital Signature Certificate, Director Identification Number, and so on.
Once the company is incorporated, it has to comply with various statutory requirements like filing annual returns, conducting regular board meetings, maintaining proper books of accounts, etc. This compliance may seem cumbersome, but it ensures the company’s transparency and credibility.
Another advantage of a private limited company is that it can raise capital through equity or debt, making it easier to attract investors or raise loans. It also has a more formal structure, making it easier to manage and operate the business.
However, there are some disadvantages of a private limited company as well, such as the higher cost of setting up the company compared to other forms of business organizations. The transfer of shares is also restricted in a private limited company, which can limit the liquidity of the shareholders’ investments.
Overall, a private limited company is a popular form of business organization that offers many advantages, including limited liability, perpetual succession, and raising capital, making it a popular choice for businesses in India.