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A private company limited by shares provides all the advantages of incorporation and is a good medium for operating and managing enterprises so long as, generally, the activity in which it is engaged is small, the owners of the business are a few persons related closely or otherwise associated to each other and the resources required for managing the business are either exclusively provided by the owners or met partly by the promoters and partly from outside borrowings. In course of time the private company may find it advantageous to expand its business which may need large financial resources. It may be necessary for this purpose for the private company to convert itself into public and draw resources by offer of its securities to the public and also get financial institutions and banks more freely.

A private company shall have a minimum paid-up capital of Rs. One lakh or such higher paid-up capital as may be prescribed and its articles shall prohibit invitation or acceptance of deposits from person other than its members, directors or their relatives.

The amended section defines a private company as one which by its articles of association:

• Right to transfer its shares, if any;
• Limits the number of members to 50 which will not include the members who are employees of the company and members who were ex-employees of the company.
• When two or more persons together hold shares, then they will be considered as a single member.
• Invitation to the public in order to subscribe for the shares or debentures for the company is prohibited.
• Acceptance of deposits from the person who are, other than the members, directors or their relatives is prohibited.

The new type of private company known as a producer company has been introduced in the act by the companies. Such a producer company consists of primary producers of agricultural produce and handloom, handicrafts and cottage industries and producer institutions as members or may be converted from a multi-State Co-operative society. Such a company shall be a private limited company but shall have minimum ten individual producers or two or more institutions or a combination of ten or more individuals and producer institutions as members and will be governed by the provisions.

The Registrar of Companies (ROC) is so particular about the documents that you are submitting for the company registration process. You need to ensure that all the documents are in a proper order before submitting it into ROC.

• DSC (Digital Signature Certificate)
• DIN (Director Identification Number)
• Scanned Copy of Pan Card.
• Scanned Copy of Voter Identity Card/Driving License/Passport.
• Scanned copy of latest bank statement/ Telephone Bill/ Electricity Bill.
• Scanned passport-sized photographs.
• Specimen signature.

• Scanned copy of latest electricity or water bill.
• Latest Rental Receipt.
• Copy of Notarised rental agreement in English.
• Copy of sale deed or property deed which should be in English.
• Obtain NOC (No Objection Certificate) from the property owner.

The name which is in pan card should be similar to the other given proofs and also the special mention is that if any change in the pan name, its surname or the name changed after the marriage, change of spelling or other anomalies it all need to be rectified before the submission.

All the utility bills which we are going to submit must be the latest bills. If it is older, the Roc arbitrarily declines the application. In order to save the time, submit the recent bills.

It is indeed to produce the NOC from the owner of the property. If it is belongs to the parent’s property, just speak to them before the process getting started. It really does not matter where the property been registered.