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What is a Private Limited Company (PLC)?

A Private Limited Company (PLC) is a kind of business entity that you can establish to run your operations. The company is segregated into shares that are wholly owned by shareholders.

What are the privileges of a Private Limited Company (PLC)?

• Separate legal entity
• Existence without interruption.
• Liability is limited.
• Shares can be transferred for free and easily.
• Possession of real estate.
• The ability to sue and be sued.
• Relationship with two people.
• Financing Ability

 

Steps for conversion of Partnership Firm into Private Limited Company (PLC):

1. Organize a meeting of the partners.
2. Put a settlement agreement in place. The proposal must be listed in the newspaper in the form URC 2 if it is chosen.
3. Obtain the DSC (digital signature certificate).
4. Get DIN in the form of DIR-3.
5. Fill out an application for the name in the RUN (unique reserve name).
6. Post an advertisement about the enrollment in two newspapers – Vernacular and English, within three weeks of publication in the E-form URC-2.
7. After obtaining the accessibility of the name by the provisions of Section 4 of the act, a firm should link the necessary information and documents to the registrar along with form no. URC-1.
8. Submit E-form SPICE+> the application for incorporation with all information about the transformed company’s directors and subscribers.

What are the list of documents to be attached for the conversion application?

PAN card/Aadhar card/Passport photo signed copies for DIN

A newspaper Add. in the form of a URC-2.

Details required for the submission of form URC-1.

– The name of the partnership firm/registration (if any).

– RUN’s SRN (submitted form).

– The number of collaborators.

– The date of the partnership agreement.

– The date of the partners’ agreement.

– Total property value – secured debt (if any).

FAQs

What is the minimum capital requirements to convert partnership into private limited?

• A minimum of two directors should be nominated, one of whom must be a citizen of India.
• This enrollment requires a minimum of two shareholders.
• As a registered office address in India, the location of the business should be provided.

What are the salient features of a private limited company?

• Limited liability companies (LLCs) (Ltd)
• Profits are only distributed to shareholders.
• Limited companies can raise funds through lending and the issuance of ordinary shares.
• The legal fees are exorbitant.