{"id":5484,"date":"2019-07-10T18:59:43","date_gmt":"2019-07-10T13:29:43","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=5484"},"modified":"2021-04-06T18:22:16","modified_gmt":"2021-04-06T12:52:16","slug":"minimum-paid-up-capital-for-private-limited-company","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/","title":{"rendered":"Minimum Paid-Up Capital for Private Limited Company"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In this era of Private Limited Companies, every existing business entity or start-up wants to register as a Private Limited Company. The reason for the same is the basic eligibility criteria and documentation. It is totally a delusion that registration under Private Limited demands huge investment. <\/p>\n\n\n\n<p>In this article, we will discuss the minimum paid-up capital and authorized capital requirement for the formation of a Private Limited Company, but before that, we must know the basics of a Private Limited Company.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a33e69e69aca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a33e69e69aca\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Private_Limited_Company\" title=\"Private Limited Company\">Private Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Eligibility_to_form_Private_Limited_Company\" title=\"Eligibility to form Private Limited Company\">Eligibility to form Private Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Authorized_Capital_for_Private_Limited_Company\" title=\"Authorized Capital for Private Limited Company\">Authorized Capital for Private Limited Company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Government_fee_for_Authorized_capital\" title=\"Government fee for Authorized capital\">Government fee for Authorized capital<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Paid-up_Capital_for_Private_Limited_Company\" title=\"Paid-up Capital for Private Limited Company\">Paid-up Capital for Private Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Different_sources_of_Paid-up_Capital_for_Private_Limited_Company\" title=\"Different sources of Paid-up Capital for Private Limited\nCompany\">Different sources of Paid-up Capital for Private Limited\nCompany<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Par_value_of_the_shares\" title=\"Par value of the shares\">Par value of the shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#PremiumDiscount_value_of_the_stock\" title=\"Premium\/Discount value of the stock\">Premium\/Discount value of the stock<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Characteristics_of_Paid-up_Capital_for_Private_Limited_Company\" title=\"Characteristics of Paid-up Capital for Private Limited\nCompany\">Characteristics of Paid-up Capital for Private Limited\nCompany<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#No_repayment_for_shares\" title=\"No repayment for shares\">No repayment for shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Recording_in_Balance_Sheet\" title=\"Recording in Balance Sheet\">Recording in Balance Sheet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Fundamental_analysis\" title=\"Fundamental analysis\">Fundamental analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Huge_costs\" title=\"Huge costs\">Huge costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Importance_of_Paid-up_Capital_for_Private_Limited_Company\" title=\"Importance of Paid-up Capital for Private Limited Company\">Importance of Paid-up Capital for Private Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Minimum_Paid-up_Capital_to_form_Private_Limited_Company\" title=\"Minimum Paid-up Capital to form Private Limited Company\">Minimum Paid-up Capital to form Private Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Difference_Between_PLC_OPC_and_LLP\" title=\"Difference Between PLC, OPC and LLP\">Difference Between PLC, OPC and LLP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/learning\/minimum-paid-up-capital-for-private-limited-company\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Private_Limited_Company\"><\/span>Private Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Private Limited Company is one of the popular forms of business entities in India. Approximately 90% of companies in India are registered under Private Limited Company. These companies are governed under the Companies Act, 2013 by the Ministry of Corporate Affair (MCA). All those entrepreneurs who want to run their business entity as both <strong><a href=\"https:\/\/swaritadvisors.com\/public-limited-company-registration\" class=\"text-primary\">Public limited company<\/a><\/strong> and Partnership, prefer to register their entity as Private Limited because it is the midway between both the forms of entities and offers several benefits.<\/p>\n\n\n\n<p>Directors and shareholders of Private\nLimited Company can improve the credibility of the business by running its\noperations according to their own choice. And, the profits are divided among\nall its members as dividends. The requirement of minimum paid up and authorized\ncapital to&nbsp;<a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\" class=\"text-primary\"><strong>start the Private Limited Company<\/strong><\/a>&nbsp;is discussed further.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_to_form_Private_Limited_Company\"><\/span>Eligibility to form Private Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Eligibility-to-form-Private-Limited-Company-1024x768.png\" alt=\"Eligibility for Private Company\" class=\"wp-image-12132\" width=\"503\" height=\"377\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Eligibility-to-form-Private-Limited-Company-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Eligibility-to-form-Private-Limited-Company-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Eligibility-to-form-Private-Limited-Company-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Eligibility-to-form-Private-Limited-Company.png 1200w\" sizes=\"(max-width: 503px) 100vw, 503px\" \/><\/figure><\/div>\n\n\n\n<ol><li><strong>Number of Directors<\/strong>: A Minimum of 2 and a Maximum of 15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li><li><strong>Number of Shareholders<\/strong>: A Minimum of 2 and a maximum of 200. However, one person can act as both director and shareholder.<\/li><li><strong>Citizenship<\/strong>: A private company can have a foreign director. However, at least one of the directors must hold Indian Citizenship.<\/li><li><strong>No Minimum Capital Requirement<\/strong>: Earlier, the minimum capital required to incorporate a Private Limited Company in India was Rs 100000. However, after the Companies (Amendment) Act, 2015, the said requirement was removed. <\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Authorized_Capital_for_Private_Limited_Company\"><\/span>Authorized Capital for Private Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Authorized capital or authorized shares are the maximum number of shares which the Company can issue to its shareholders. The Company needs to prescribe its authorized capital in MOA and&nbsp;importance of AOA during its incorporation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Government_fee_for_Authorized_capital\"><\/span>Government fee for Authorized capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affair\ncharges the amount of Rs.5000 for minimum authorized capital of Rs.1 lakh. If\nthe company raises additional authorized capital, then the charges by MCA are\nas follows:<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td><strong>Additional Authorized Capital (Rs.)<\/strong>   <\/td><td><strong>Per lakh fees as prescribed by MCA<\/strong>   <\/td><\/tr><tr><td>\n  Rs.1,00,000-\n  Rs.5,00,000\n  <\/td><td>   Rs.4000\/- lakh   <\/td><\/tr><tr><td>\n  Rs.5,00,000-Rs.50,00,000\n  <\/td><td>   Rs.3000\/- lakh   <\/td><\/tr><tr><td>\n  Rs.50,00,000-Rs.1,00,00,000\n  <\/td><td>   Rs.1000\/- lakh   <\/td><\/tr><tr><td>\n  More than 1\n  cr.\n  <\/td><td>   Rs.750\/-lakh   <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Paid-up_Capital_for_Private_Limited_Company\"><\/span>Paid-up Capital for Private Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whereas\non another side, paid-up capital is the part of authorized capital which states\nthe number of Shares Company issued to its shareholders. For example, the\ncompany mentioned its authorized capital (maximum amount raised by issuing\nshares) of Rs.10 lakh at the time of incorporation but till now it raised only\n7 lakh from its shares. So, it\u2019s paid up capital is Rs. 7 lakh.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_sources_of_Paid-up_Capital_for_Private_Limited_Company\"><\/span>Different sources of Paid-up Capital for Private Limited\nCompany<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The two different sources for the funding of paid-up capital as follows:<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Par_value_of_the_shares\"><\/span>Par value of the shares<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is the foremost source of the paid-up capital for any Private Limited Company. In this case, the shares\/stocks of the company are issued at the par value. The par value is the fixed basic value of the stock mentioned in the Company\u2019s&nbsp;guide to alter MOA&nbsp;during its Incorporation. It is also called as \u201cNominal value\u201d or \u201cFace value\u201d of the share.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PremiumDiscount_value_of_the_stock\"><\/span>Premium\/Discount value of the stock<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Private Limited Companies in India\ncan also raise funds by issuing the shares or stock of the company at discount\nor premium on their par value. For example; the company issues the share with\nthe par value of Rs.10 at Rs.20 which means, it will be considered as premium\nshares. Whereas on other side, if company issues the share at Rs.7 whose par\nvalue is Rs.10 then, it will be considered as discounted shares.<\/p>\n\n\n\n<p>Generally, companies issue shares at\na discount when they lack capital for their business operations and urgently\nrequired capital. They also issue at discount value when a company is suffering\nwith huge loses.&nbsp; On the other side, companies issue at premium value when\nthey are enjoying huge profits and there is a high demand in a limited number\nof shares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Characteristics_of_Paid-up_Capital_for_Private_Limited_Company\"><\/span>Characteristics of Paid-up Capital for Private Limited\nCompany<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Characteristics-of-Paid-up-Capital-for-Private-Limited-Company-1024x768.png\" alt=\"Paid up Capital Characteristics\" class=\"wp-image-12133\" width=\"519\" height=\"390\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Characteristics-of-Paid-up-Capital-for-Private-Limited-Company-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Characteristics-of-Paid-up-Capital-for-Private-Limited-Company-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Characteristics-of-Paid-up-Capital-for-Private-Limited-Company-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Characteristics-of-Paid-up-Capital-for-Private-Limited-Company.png 1200w\" sizes=\"(max-width: 519px) 100vw, 519px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_repayment_for_shares\"><\/span>No repayment for shares<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is one of the major\ncharacteristics of paid-up capital. This states that once investor purchases\nthe share and invest in the company then, they do not require paying again for\nthe shares they have purchased. They also don\u2019t even need to buy-back their\nshares in the future.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recording_in_Balance_Sheet\"><\/span>Recording in Balance Sheet<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Paid-up capital is also recorded in\nthe balance sheet of the company. It is recorded under stockholder\u2019s equity.\nThe paid up capital can be recorded differently for each source as mentioned\nabove. All the equity generated by issuing shares at par value recorded under\n\u201ccommon stock paid-up capital\u201d and the shares issued at discounted or premium\nvalue recorded under \u201cadditional stock paid-up capital\u201d accounts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fundamental_analysis\"><\/span>Fundamental analysis<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Paid-up capital helps the company to\ndetermine whether its equity is exceeding its debts or not. If equity exceeds\nthe company\u2019s debts then it shows that the company is having a lower\ndebt-equity ratio. Lower debt-equity ratio means that the company is less\ndependent on its debts and more dependent on its equity. So, the company always\ntries to maximize its paid up capital to lower its ratio.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Huge_costs\"><\/span>Huge costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The cost of maintaining paid-up\ncapital is quite expensive because if investors invest in the company then,\nthey want some share of its profits in the form of dividends. As a result, the\npayment of dividends or non-cash benefits is pricey for the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_Paid-up_Capital_for_Private_Limited_Company\"><\/span>Importance of Paid-up Capital for Private Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Paid up capital is the amount of capital raised by the company by issuing all of its shares. More paid-up capital means the lesser dependence on debts. A Private Limited Company that is called as fully paid-up capital company is the company that issued all its shares and now it can raise its capital by exceeding its authorized capital limit or by debts.<\/li><li>The paid-up capital figure in the balance sheet of the company determines the company\u2019s health in the market. It represents how much extent the company is dependent on equity for its financing. The level of equity is compared to the level of debt to determine the financial condition of the company.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Minimum_Paid-up_Capital_to_form_Private_Limited_Company\"><\/span>Minimum Paid-up Capital to form Private Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per Companies Act, 2013, the minimum paid-up capital to form the Private Limited Company was Rs.1 lakh but after the amendments in Companies Act (2013),&nbsp;<strong>Companies (Amendments) Act, 2015&nbsp;<\/strong><sup><a href=\"http:\/\/www.mca.gov.in\/Ministry\/pdf\/AmendmentAct_2015.pdf\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> states that&nbsp;there is no minimum limit of Paid-up capital to form Private Limited Company but the Authorized capital of minimum Rs.1 lakh is still mandatory to form this Company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_Between_PLC_OPC_and_LLP\"><\/span>Difference Between PLC, OPC and LLP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>Basis of\n  Difference<\/strong>\n  <\/td><td>\n  <strong>Private\n  Limited Company<\/strong>\n  <\/td><td>\n  <strong>One Person\n  Company<\/strong>\n  <\/td><td>\n  <strong>Limited\n  Liability Partnership<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>Regulating\n  Act<\/strong>\n  <\/td><td>\n  Companies\n  Act, 2013.\n  <\/td><td>\n  Companies\n  Act, 2013.\n  <\/td><td>\n  Limited\n  Liability Partnership Act, 2008.\n  <\/td><\/tr><tr><td>\n  <strong>Registration\n  Requirement<\/strong>\n  <\/td><td>\n  It is\n  mandatory to obtain registration for a Private Limited Company\n  <\/td><td>\n  It is\n  mandatory to obtain registration for a One Person Company\n  <\/td><td>\n  It is\n  mandatory to obtain registration for a Limited Liability Partnership\n  <\/td><\/tr><tr><td>\n  <strong>Number of\n  Members Needed<\/strong>\n  <\/td><td>\n  A Minimum\n  of 2 and Maximum 200\n  <\/td><td>\n  Only 1\n  person required\n  <\/td><td>\n  A Minimum\n  of 2 and Maximum no limit\n  <\/td><\/tr><tr><td>\n  <strong>Status of\n  Separate Legal Entity<\/strong>\n  <\/td><td>\n  Yes, this\n  business format enjoys the status of a Separate Legal Entity.\n  <\/td><td>\n  Yes, this\n  business format enjoys the status of a Separate Legal Entity.\n  <\/td><td>\n  Yes, this\n  business format enjoys the status of a Separate Legal Entity.\n  <\/td><\/tr><tr><td>\n  <strong>Limited or\n  Unlimited Liability<\/strong>\n  <\/td><td>\n  Limited\n  Liability\n  <\/td><td>\n  Limited\n  Liability\n  <\/td><td>\n  Limited\n  Liability \n  <\/td><\/tr><tr><td>\n  <strong>Requirement\n  of Getting Statutory Audit Done<\/strong>\n  <\/td><td>\n  Yes, a\n  private company must get its Statutory Audit done.\n  <\/td><td>\n  Yes, an\n  OPC must get its Statutory Audit done.\n  <\/td><td>\n  Depends on\n  the situation\n  <\/td><\/tr><tr><td>\n  <strong>Transferability\n  of Ownership<\/strong>\n  <\/td><td>\n  Transferability\n  of Ownership is Restricted for this business format\n  <\/td><td>\n  Transferability\n  of Ownership is Restricted for this business format\n  <\/td><td>\n  Transfer\n  of Ownership is Allowed in this business format\n  <\/td><\/tr><tr><td>\n  <strong>Perpetual\n  Existence <\/strong>\n  <\/td><td>\n  Yes, this\n  business format has the feature of Perpetual Existence\n  <\/td><td>\n  Yes, this\n  business format has the feature of Perpetual Existence\n  <\/td><td>\n  Yes, this\n  business format has the feature of Perpetual Existence\n  <\/td><\/tr><tr><td>\n  <strong>Foreign\n  Participation Allowed or Not Allowed<\/strong>\n  <\/td><td>\n  Foreign\n  Participation is allowed in this business format\n  <\/td><td>\n  Foreign\n  Participation is not allowed in this business format\n  <\/td><td>\n  Foreign\n  Participation is allowed in this business format\n  <\/td><\/tr><tr><td>\n  <strong>Applicable\n  Tax Rates<\/strong>\n  <\/td><td>\n  Moderate\n  <\/td><td>\n  Moderate\n  <\/td><td>\n  High\n  <\/td><\/tr><tr><td>\n  <strong>Statutory\n  Compliances<\/strong>\n  <\/td><td>\n  High\n  <\/td><td>\n  Moderate\n  <\/td><td>\n  Moderate\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hence, it is concluded that our perception regarding huge investments in forming Private Limited is totally fake. The government is all supporting the entrepreneurs to develop the country\u2019s economy and waived off huge capital requirements. Forming an entity as Private Limited helps the company to grow better and far with all government support. So, what are you waiting for? Obtain your Private Limited Company Registration today with <strong>Swarit Advisors<\/strong>. Our team of experts ranks high in providing on-time registration. <\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/designations-in-a-private-company\/\">Designations in a Private Company<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this era of Private Limited Companies, every existing business entity or start-up wants to register as a Private Limited Company. The reason for the same is the basic eligibility criteria and documentation. It is totally a delusion that registration under Private Limited demands huge investment. In this article, we will discuss the minimum paid-up [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":12134,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[168],"tags":[1140],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5484"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=5484"}],"version-history":[{"count":21,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5484\/revisions"}],"predecessor-version":[{"id":18605,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5484\/revisions\/18605"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/12134"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=5484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=5484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=5484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}