FAQs on Private Limited Company

Q. What do you mean by incorporation of Private company under Companies Act, 2013?

By Paras Mehra 09 Feb 2017

Incorporation is another word for Private Company registration in India. The word incorporation is generally used in connection with company registration in India.

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Q. What are the documents required for bank account opening of Private Ltd Company?

By Paras Mehra 09 Feb 2017

The lists of documents required for opening the bank account of Private Limited includes Certificate of Incorporation, PAN Card Acknowledgement, MOA and AOA, Board Resolution as per the format given by Bank, Bank Account opening form as per respective bank.

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Q. Why should startup register Private Limited Company in India?

By Paras Mehra 09 Feb 2017

Startup are the innovative category of business man who wants to grow very fast within a short span of time like the previous startups did like Flipkart, Ola, PayTM etc. They could only become so big because they were able to raise the capital in a timely manner.

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Q. How many people are required to register Private Limited Company in India?

By Paras Mehra 09 Feb 2017

The minimum requirement to start a private limited company is 2 person which can be increased to maximum of 200 people. Further, in case you are a sole person and wants to start a private limited company, then you can choose to register a One Person Company (OPC).

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Q. What is a difference between directors and shareholders?

By Paras Mehra 09 Feb 2017

Shareholders are the person who holds the shares of the company whereas Directors on the other hand, are the employees of the company who runs the company.

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Q. What is the minimum capital amount required to register a company in India?

By Paras Mehra 09 Feb 2017

There is no requirement of minimum capital, as the government has done away with the requirement of having the minimum share capital.

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Q. What is a total time taken to register Private Companies in India?

By Paras Mehra 09 Feb 2017

It takes around 10 to 15 days to register company if all the documents are provided on time. 10 to 15 days is an average time taken to complete all the formalities

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Q. Can NRI’s/Foreign national become a director in Private Ltd Company?

By Paras Mehra 09 Feb 2017

Yes, a NRI or a foreign national can become the director in the private limited company, subject to the condition that out of all the directors’ atleast one director should be resident in India for more than 182 days.

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