1. Is it necessary to have 2 directors for Private Limited Company Registration?
Yes, you need a minimum of two directors for a private limited company. The maximum members can be 200. If you are the sole owner, you can register as a One Person Company.
2. Who can be a member in Private Limited Company?
Any individual/organization can become the member of the private limited company including foreigners/NRI. However, the individual must 18+ above in terms of age and should have a valid PAN card.
3. For incorporation of private limited company do I have to be present in person?
The entire procedure is 100% online and you don’t have to be present at our office or any other office for incorporation. A scanned copy of documents has to be sent via mail. They get the company incorporation certificate from MCA via courier at their business address.
4. Are there any other payments to be made for incorporation certificate in addition to fee paid at the time of registration?
There is absolutely no other payment. Our charges are inclusive of everything. We will send you an invoice with no hidden charges. Our team provides you support till you get your bank account.
5. What is the time taken by LegalRaasta.com in forming a Private Limited Company?
Legalraasta.com can incorporate a Private Limited Company within 15-25 days. The time took also depends on relevant documents provided by the applicant and speed of approvals from government. To ensure speedy registration, please pick a unique name for the proposed Company and make sure you have all the required documents prior to starting the registration process.
6. Can NRIs/Foreign Nationals become a Director in Private Limited Company?
Yes, an NRI or Foreign National can become a Director in a Private Limited Company. They can get a DPIN from Indian ROC. Also, they can be a majority shareholder in the company. But, at least one Director on the Board of Directors must be an Indian Resident.
7. What is the minimum capital required for forming a private limited company?
You need to start the company with a minimum capital of Rs. 100,000. However, you neednot pay this amount to the bank. You can also show that the capital has been utilised as the pre-incorporation expenses of the startups e.g, private limited registration expenses. You can also show this capital has been infused in form of assets such as computers etc.
8. Do I need a proper office address to start a company?
No, you don’t need a proper office. You can even register your company at your residential address. It is perfectly legal to start the company at your home or in your garage. MCA team typically doesn’t visit your office.
9. What if I have only one director for my Private limited company?
Well, you can get someone from your family or friend circle as the second direction and give them marginal share, e.g, 0.01%. You also have the option to register a One person company, but it will not be possible to add directors in OPC later.
10. Why a Private limited company is called a separate Legal Entity?
A company is a legal entity and a different person established under the Act. A company is treated as a different person which can own property and have creditors or debts. The members (Shareholders/Directors) of a company will have no liability to creditors of a company in case the company is unable to pay the debts.
11. Can a Salaried working person also become a director of a Private Limited Company?
Yes, you as a salaried person can become the director in private limited, LLP or OPC private limited company. You need to check your employment agreement if that allows for such provisions. In most, cases employers are comfortable with the fact that their employee is a director in another company.
12. Can I convert my Limited Liability Partnership (LLP) in a Private Limited company?
No, you can’t convert your LLP into a Private Limited Company as it is not MCA. Both the LLP Act, 2008 and the Companies Act, 2013 don’t have any provisions on conversion of LLP in a private limited company. However, if you want to expand your business you can register a new Private Limited Company with the same name as that of the LLP. The LLP Company just needs to issue a no objection certificate.