A PvtlimitedCo means a company having a minimum paid-up share capital as prescribed, and which by its article -

1. Restricts the rights to transfer its shares
2. Provided that where 2 or more persons hold one or more shares in a company jointly, they shall for the purpose of this clause, be treated as a single member Provided further that-
1. Persons who are in employment of the company and
2. Persons who, having been formely in the employment of the company, where members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and
3. Prohibits any invitation to the public to subscribe for any securities of the company.

It’s not necessary to form a Privatelimited in order to start a business. Also, a Pvtlimited is only one of several ways to structure a business. Other possibilities include: Partnership, LLP, Public Limited, sole proprietorship, Sec 8 Co, Trust, and Society.

The Minimum required for the incorporation of a Pvtlimited are:

1. The number of members must be between 2-200.
2. No minumu capital
3. There must be at least two directors and two shareholders
4. Atleast one director must be resident and must have a Directors Identification Number (DIN)
5. PAN card copy of directors/shareholders and Passport copy for NRI subscribers.

At the time of Incorporation of a Pvtlimited Co, the company needs to provide an address proof. The Ministry of Corporate Affairs (MCA) allows a residential address to be used as the company’s registered address. Thus any address can be provided as the registered address

Incorporating a company in Singapore as a local is a relatively straightforward process. All you need is the following:

1. Proof of Identity and Address: Directors and shareholders need to provide identity proof (such as Aadhar card, passport) and address proof (such as electricity bills, Gas bills or bank statements or any other proof).
2. Registered Office Address Proof: Documents proving the registered office address of the company, such as a rental agreement or sale deed, NOC, Electricity bill, Gas bill etc.

Both LLPs and PvtlimitedCo protect owners’ personal assets from business liabilities or debts. But they have some key differences, including:

1. How they’re owned. LLPs have one or more partners, but PvtlimitedCo have shareholders.
2. How they’re maintained. Both LLP & PvtlimitedCo LLP are required to be keep and maintain books of accounts at their registered office for the period of 8 years.However, the statutory audit is not mandatory for an LLP. An LLP should get its accounts audited when its annual turnover exceeds Rs.40 lakhs and the capital contribution exceeds Rs.25 lakhs. The statutory audit is mandatory for a PvtlimitedCo, irrespective of its turnover.
3. How they’re taxed. An LLP should pay a 30% fixed rate tax on its total income subject to 12% surcharge if its Total income exceeds 1 crore. Whereas the PvtlimitedCo has to 25% if its total turnover is less than 400 crores and 30% if its total turnover is more than 400 crores. However,PvtlimitedCo companies can also choose between the new rates of 22% (for existing companies) and 15% (for new companies).

PvtlimitedCo is a better option to start a new business journey than a public limited company. Though both the companies have stringent compliances, private limited companies serves as a better result in entrepreneurship. There are also limited requirements to start up a new PvtlimitedCo. A minimum of two shareholder and two directors is required.

Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built.

It defines the constitution, powers and objects of the company. The Articles of Association (AOA) is defined under section 2(5) of the Companies Act.

It details all the rules and regulations relating to the management of the company.