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What are the restrictions in private limited company registration?


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.

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