Company Registration in Hyderabad

Hyderabad, the capital of Telangana, India, is based on traditional manufacturing, the knowledge sector, and tourism. Better roads and a good living standard here creates attractive investment opportunities for Business Owners. The business climate provides a lot of Small Scale Business Opportunities here. Hyderabad accommodates the head offices of some of the biggest multinational companies in India. Hyderabad could be one of the best places to start your business.

If you are looking to build a business in India, Hyderabad is a place you should consider with utmost importance. Once you have come up with a business idea and decided to start a business you will need to follow some procedures to register a company in India.

Private Limited Company is considered one of the most popular legal structures amongst the small, medium, and large businesses in India due to its various advantages. It can be chosen by anyone looking to build a scalable business. A Private limited company registration requires a minimum of two members and a maximum of two hundred members.

A Private Limited Company is a type of privately held small business entity, in which the owner’s liability is limited to their shares, the firm is restricted to having 200 or fewer shareholders, and shares are prohibited from being publicly traded. A shareholder of a private limited company has limited liability towards creditors, it is restricted only up to the unpaid amount of shares. In case of a default, banks/creditors can sell only the company’s assets but not the personal assets of directors and shareholders. Start-ups and growing businesses choose Private Limited Company registration in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders, and enables them to offer employee stock options to attract top talent. As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Sole Proprietorship or General Partnership.

• Membership

In order to start a Private Limited Company, minimum of 2 member/shareholder are required. An individual person above 18 years of age or a body corporate can be a member or shareholder in a Private Limited Company. The maximum count of member/shareholder in a Private Limited Company can go upto 200.

• Directorship

A Private Limited Company needs to have a minimum of 2 directors who shall manage the conduct and affairs of the company. The directors may be existing shareholders of the company or can be a person other than a shareholder. There may be a maximum of 15 directors in any company. Every Indian Company has to ensure that they have 1 director who is a permanent resident of India.

• Restriction on Transfer of Shares

The members/shareholders of private limited companies cannot transfer their shares publicly. There can be a restriction on the transferability of shares in these companies.

• Foreign Direct Investment (FDI)

A foreign citizen, foreign corporate entities, NRIs or OCI’s are allowed to be the Directors and/or Shareholders of a Company with Foreign Direct Investment, which makes Private Limited Company as a preferred choice of entity for foreign promoters.

• Prohibition on Inviting Investments from Public

A Private Limited Company is not allowed to invite shareholders publicly to purchase or subscribe to its shares or any other kind of securities. It is also not allowed to accept deposits from the public other than its members, directors, or relative of directors.