Characteristic features of a private company:

• In a private company the transferring of shares is not as easy when compared with public companies.
• When the shareholder of the company wants to transfer his shares, he first needs to transfer that to the existing member of that firm.
• The price value of shares will be determined by the director or the shareholder.
• At least of two directors need to form a private limited company.
• The members’ volume should be restricted as fifty excluding all the ex-employees who were in that firm and who continues working in that concern.
• At least there should be a minimum of two members when forming a firm.
• When more than two persons, holding their shares conjointly, they will be treated as a single member.
• It couldn’t invite the public for issuing the shares it has to make its own arrangement since it is a private firm.
• Special privileges can be enjoyed by the private company.

Steps for company registration Procedure

STEP1 :

Obtain Director Identification Number:

First and foremost thing is to get a DIN for both the existing and a intended directors.

STEP2 :

Digital Signature Certificate:

To ensure the documents to be secured and get authenticity, one should get a digital signature certificate. Encryption and decryption of information will secure our documents and information. To submit and securing a documents electronically, the digital signature is important.

STEP3 :

Company name should be reserved with the help of ROC (Registrar Of Companies).

STEP4 :

After got the name approval, it’s mandatory to examine about the memorandum and articles of association.

STEP5 :

Obtain the certificate of incorporation.To incorporate a company, following documents are required they are as follows:

Required documents to be noted:

• Obtain a Tax Account Number (TAN) card.
• Permanent Account Number (PAN) need to be submitted.
• Articles of Association.
• Copy of letter from the register which indicates the approval of name.
• Power of attorney which says the consent of a person to act as a director.
• Registered office location and the particular details of the directors should be mentioned in a file and that should be either produced during the time of incorporation or else thirty days from the date of incorporation.

STEP6 :

Proof of identity along with address proof should be submitted and all the details about the director, members should be submitted as a document.

STEP7 :

Payment of fees:

After submitting all the documents the payment has to be made.

STEP8 :

Issuing of certificate:

Certificate of incorporation will be provided by the ROC after the crucial examination.