Private Limited Company Registration

Any individual/organization can become the member of Private Limited Company. Even Foreigners and NRI and foreign entities can become member of Private Limited.

Yes, NRI/Foreign nationals can become directors in Private Limited company. They must get a DIN from Indian ROC. Also, they can be a majority shareholders in the company.However, at least one director on the board of directors must be an Indian Resident.

“Company” means a company incorporated under Companies Act 2013 or any previous company law.

It is a voluntary association of several members with a separate legal entity, and the liability of its members is limited to the shares held by them. Laws, rules and regulations govern all the activities of this form of company. Minimum 7 members required to get registered as Public company. INDIA

Raising capital through public issue of shares • The most obvious advantage of being a public limited company is the ability to raise share capital, particularly where the company is listed on a recognised exchange. • Since it can sell its shares to the public and anyone is able to invest their money, the capital that can be raised is typically much larger than a private limited company. • It’s also possible that having stock listed on an exchange could attract investment from hedge funds, mutual funds and other institutional traders • More capital • Selling shares to the public means that anyone can invest in your company, meaning greater options for where to source value funds. • Potentially, this can raise significant funds if your company is particularly appealing to the public and traders. • More attention • Being listed on an exchange ensures that hedge funds, mutual funds, and other traders take note of your business. More interest means more business opportunities for you on top of more capital to be gained. • It's the ideal way to make your business a more prominent name in your field. • Spreading risk • The more people that buy shares in your Public Company , the more the risk is spread out • It's also safer than relying on one or two angel investors, as the level of influence is spread out wider amongst your many new shareholders. • Growth and expansion opportunities • By having less risk, it's the perfect opportunity for growing and expanding your business - investing into new projects and products, through the money gained via shares. • Banks are often more willing to extend finance to a public limited company, with a stock exchange listing frequently improving your creditworthiness. • Prestige • Having PLC at the end of your company's name adds prestige and grandeur to your business. Future customers, suppliers, and employees will view your business more positively if it has those letters at the end of the name. Even more so if it's also listed on a stock exchange. • It can even lead to free publicity with the media devoting more attention to such firms.

• Smaller resources A private company cannot have more than fifty members. Its credit standing is lower than that of a public company. Therefore, the f financial and managerial resources of a private company are comparatively limited. • Lack of transferability of shares There are restrictions on the transfer of shares in a private company. As a result a shareholder cannot leave a private company easily and quickly. • Restricted Access to Capital Markets Private Limited Companies cannot get its shares listed in any stock exchange through initial public offerings. With this restriction, private limited companies may find it difficult to attract outside investors to buy the shares. • Increased Legal Compliance & Administration Costs Private limited companies must submit its annual returns, financial statements, Board reports etc to the Registrar of Companies annually. Every private limited must get its accounts audited by a practicing Chartered Accountant, which makes it mandatory to appoint a chartered accountant as auditor of the company; even there is no significant accounting transaction. Further there are many event based compliance requirements too. So in order to meet legal obligations casted on private limited companies by the Companies Act, 2013 and others statues, a company must have a competent professional by its side to advise and help in ensuring statutory compliances, which increases the general and administrative expenses of a business.