Private Limited Company

Top Facts that you should beware of Private Limited Company Registration in Trichy

Pvt Ltd Company by the name itself says that it can be owned by common people but it has to be registered by the Government. The Government paves way for the common people to start the business. Minimum two persons are needed to start a private limited company. Private limited Company Registration in Trichy says that maximum shareholders must be 200. They cannot raise money from general public. The company limited by guarantee is formed by non-profit organisation like sports club. This does not have any shareholders. But it is run by guarantors and these guarantors agree to pay lump amount towards company debts. Such guarantor may be a corporate body or any person. The company limited by guarantee should have one guarantor and one director. Even one may take these two positions. 

Private limited Company Registration in Trichy says that the company limited by guarantee can act like a company. It can hire employees, can raise fund from bank, buy or sell property, defend lawsuit. The company limited by guarantee takes the name ‘limited’.  It can be used for non-profit purposes. The profit obtained can be reinvested and the same can be used for promoting non-profit activities. This form is sometimes preferred over the industrial and provident society because company law allows multiple classes of member and with separate voting constituencies.

Subsidiary Pvt Ltd Company

In a company if 51% of the share is held by other company then it is called subsidiary company. If 100% of company shares are held by other company then it is called as 100% subsidiary private limited company or wholly-owned subsidiary. In short a subsidiary company is controlled by other company. Private limited Company Registration gives an example that; George Pvt ltd Company has 100% shares of the other company namely Hanes Pvt Ltd Company, and then Hanes Pvt Ltd Company is the subsidiary of George Pvt ltd Company. George Pvt ltd Company is also called as holding company. Holding company is also known as parent company. So this system is useful for protecting properties from each other’s liabilities. For an example if A is holding company that has B, C, D and E companies then if company E is sued then other B,C,D companies are not affected. 

Private limited Company Registration in Trichy says that parent company should have an oversight to the subsidiary. The subsidiaries’ assets are taken then it means that parent company has day-to-day supervision over subsidiary. Hence the holding company can control the Board of Directors of another company, also more than half of the total voting power of the other company, also more than half of the nominal value of other company and also more than half of the equity share capital of other company. The subsidiary company should have mandatory declaration to be filed under Section 89 of Companies Act 2013 in case of wholly owned subsidiary company.

Private limited Company Registration says about capital and revenue profit. If the amount earned by the subsidiary before acquisition is called capital profit. After acquisition the situation changes. It is owned by other company. So the amount earned after acquisition then it is called revenue profit. Also unrealised profit can be defined as goods that are not sold at the end of the year. The holding company receive dividends from subsidiary company and this dividend should be eliminated while consolidating profit and loss account.

Consolidation of balance sheet

Pvt Ltd Company Registartion in Trichy- Some important Factors

The balance sheet of holding company and subsidiary company are combined in consolidated balance sheet. The share of minority and share of holding company must be considered while consolidating balance sheet. Private limited Company Registration says that the date of balance sheet of holding and subsidiary companies should be the same. And also the unrealized profit, dividend, debtors and creditors, bills receivable and payable, loans and debentures which are known as common transaction must be eliminated when preparing consolidation of balance sheet.

The disadvantage of holding company comes when audit, income tax are in complex. It has interest in establishing monopoly over the market. Private limited Company Registration says that this monopoly is against public interest. And also it is a costly management.

Advantages of Holding company

Pvt Ltd Company Registartion in Trichy- Some important Factors

Private limited Company Registration in Trichy says that holding company provides, 

Buying power, employees, technical expertise to the subsidiary companies

Capacity to start new companies and products

Monetary means.

And the subsidiary company can enjoy the goodwill of the holding company.

A private company has the above features which can be treated as separate property. There are multiple relationships with the directors. The most essential quality for leadership is not perfection but credibility- said Rick Warren. So a private limited company when registered has the people’s confidence and very easy to raise funds. To protect personal assets, various measures are taken as discussed above. Hence there is separation between management and ownership.


I hope this article will help you. We Smartauditor provides all types of company registration, IPR Services, and GST Registration all over Tamilnadu. Our Services are cost-effective and we offer full time support at any time.

Private Limited Company

Boost your Pvt Ltd Company Registration with these steps

Here in this blog, I am going to discuss about the impact of a PVT LTD Company Registration in you business. Normally, Starting a business is the key for the most interesting and rewarding experience in the business life cycle. That is the time for most entrepreneurs are starting their journey in the business entity. At first, they are choosing which entity they have to choose. As well as, It is an important decision and the result may impact greater variations in the upcoming future as well. So, consulting with a professional to discuss your business plan and choose the correct entity is an added advantages to support the vision of your Company.

The Private Limited Company is a form of business entity mainly opt for small scale of business types. Generally, Each responsibility of the members are limited to the amount of shares respectively held by them. We cannot able to trade the shares of the PVT Ltd in publically. Here in this blog we are going to discuss about the characteristics, Advantages and requirements of a Pvt ltd company.

Characteristics of a Private Limited Company

PVT LTD Company Registration that Wins Customers

As per the provision of company’s Act there should be minimum of two members and maximum of 200 members in a company.

Comparatively, In case of liabilities of the members, it also limited. Which means the personal assets of the shareholders are not in risk if the company is facing any difficult circumstances.

The life of the company always in existence even after the death or insolvency of the members or directors. It leads the perpetual succession of the company.

Additionally, The private company always having a privilege over the public company. So there is no necessary to keep an index of its members but it is not same as in public company. The public limited company always have to make & keep an index of its members.

Turn your Pvt Ltd company into high performing machine

In case of the number of directors, the private sector have only two directors.

Likewise, The paid up capital should be in minimum of 1 lakh

The full version of the statement of the company is calling as prospectus and is issues by the company for the publics. But in case of public limited company there is no need for the preparation of prospectus.

Minimum subscription is the amount receives by the company which is 90% of the share issuing within a certain period of time. Furthermore, If the company is not receiving that 90% it cannot able to process further. Here in case of private company the shares are allocating to the public without getting any subscriptions.

It is mandatory to use “private limited” after the company name.

Obligations for Private Limited Company Registration

The main Obligations for the private limited company registrations are.

Members: – As per the companies Act 2013, the minimum number of members should be two and the maximum number is 200.

Directors:-there should be minimum of two director and each of the director should hold a Director Identification Number (DIN). DIN is provides by the ministry of corporate affairs. One of the director should be a resident in India.

Notably, The main important component of a private company is its name. The name contains three parts. Name, activity and the private Limited company. Each Pvt Company have to add the suffix as Private Limited Company. Each company have to send 5-6 names for getting approval and that are should be unique and expressive. The name should be unique & does not similar with the existing names of the company.


PVT LTD Company Registration that Wins Customers

Registered office address is mandatory. For registration the company have to give the temporary working space address. After it get registered the company’s main affairs have to conduct in the registered place and all the confidential documents are kept as secure.

Getting DSC

Especially, In the modern world all the documents and filing procedures are making via online. Each and everything are in an online based. So every owners of the business need to get the DSC Registration Certificate which are mainly using to make the authentication process. Each and every director of the company should get the Digital signature certificate.

In a company there are various professionals requiring to do many purposes. Particularly, For incorporation, for GST Registration, DSC everything should need different professionals. Professionals like company secretary, charted accountant, cost accountant, etc are hiring to make the certificates at the time of company registration.

Advantages of a Private Limited Companies

Here we are going to discuss with the advantages of a Private Limited Companies. Ownership, minimum number of shareholders, legal formalities, management & decision making, minimum share capital, confidential etc. There are enormous number of advantages in case of a private limited company. Let us discuss each.


Regulations and the ownerships can sell in the open market in case of a public company. But in case of private company the shares are transferred to others by choice of the owners. Management, founders, or the group of private investors are capable of share such transfers in the open market. Here the private company aim to make less count in case of its shareholders. This is not a drawback. Through the less number they can make simple and relevant decisions and making the company complex free.

Minimum shareholders

The minimum is 2 for a private company. Whereas in case of a public company the minimum requirement is 7.

Legal bureaucracies

PVT LTD Company Registration that Wins Customers

The legal formalities of the companies are sometimes very expensive & time consuming. The public company formation requires lots of legal formalities when compared with the private companies. But don’t worry about the private company formation. There exist comparatively shorter legal procedures.

Disclosing Data

The public company disclosing all the financial statements in every quarter neither it will affect the public investment. But private companies are quite different there is no such rules or regulations.

Decision making

The decision making and the managements are literally complex in case of public companies. Because there are more number of peoples and the company board have to be consulted with them. But it is less in case of a private limited company, as there are less number of shareholders.

Focus of management

Public company managers are focused to increasing the values of shares whereas the private companies are making flexible decisions in the short and long term journeys.

More Legal requirements

The private companies need not to worry about shareholder expectations and interference in the stock market pressure. The public company shareholders are only focusing on the current profits and incomes. They used to pressurize the company to make more earnings.

Share capital

The public limited company requires minimum share capital of Rs. 5, 00,000. But the private company requires minimum of Rs. 1, 00,000 at the earliest. But now there is such minimum requirements. There is no pressure in the fund management.


The business secrets should be confidential. The competitors are not able to access your data. In Public companies the legal settlements, compensation details etc are not kept as reserved. Likewise, the information of the private company also secure and confidential.


If you want to register your Private limited Company in Coimbatore, Don’t Worry , we Smartauditor is here to save you from all the legal hindrances. transparent pricing with time consuming is centralized us from others. Our branches are located over Salem, Trichy and Erode. Do register and be stand out in the global Market.

Have a Happy Day !!!!