Restrictions in Pvt Ltd Company Registration
Restrictions in Pvt Ltd Company Registration, In India, registering a Private Limited Company is subject to specific restrictions, which are outlined below:
For the formation of a Private Limited Company, it is necessary to have a minimum of two directors, while the maximum limit stands at 15 directors. Additionally, at least one director must be a resident of India.
Minimum number of shareholders
A Private Limited Company should have a minimum of two shareholders and can have a maximum of 200 shareholders.
Name reservation
The propose name for the company must be unique and not identical or similar to any existing company or trademark. It should also be non-offensive and in compliance with the law.
Minimum authorized capital
There is no mandatory minimum authorize capital requirement for a Private Ltd Company in India.
Restricted activities
Private Limited Companies are not allow to engage in certain activities, including agricultural or plantation activities, real estate, construction, and mining activities.
Foreign investment
In specific sectors in India, foreign investment may require prior approval from the government, and these regulations apply to Private Limited Companies as well.
Compliance requirements
Private Ltd Companies are obligate to adhere to various legal and regulatory obligations concerning annual filings, taxes, audits, and corporate governance.
Restrictions in Pvt Ltd Co Reg
It is crucial to seek professional advice and ensure compliance with all legal and regulatory prerequisites before incorporating a Private Ltd Company.
FAQs:
- What is the minimum number of shareholders required to register a Private Ltd Company?
- At least 2 shareholders are require.
- Can a Private Limited Company invite the public to subscribe to its shares?
- No, a Private Limited Company cannot invite the public to subscribe to its shares.
- What is the maximum number of shareholders allow in a Private Ltd Company?
- A maximum of 200 shareholders is allow.
- Is there a restriction on transferring shares in a Private Limited Company?
- Yes, share transfer is restrict and requires approval from the board of directors.
- Can a Private Ltd Company issue debentures to the public?
- No, a Private Ltd Company cannot issue debentures to the public.
- Are there any restrictions on the number of directors in a Private Limited Company?
- A Private Limited Company must have a minimum of 2 directors and can have a maximum of 15 directors.
- Can a Private Limited Company accept deposits from the public?
- No, it cannot accept deposits from the public.
- Is there a restriction on foreign ownership in a Private Ltd Company?
- No, 100% Foreign Direct Investment (FDI) is allowed in most sectors under the automatic route.
- Are there restrictions on the name selection for a Private Ltd Company?
- Yes, the name must be unique and not identical or similar to an existing company or trademark.
To Visit https://www.mca.gov.in/
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