Private Limited Company

The hardest choice a person can make is to start a business, but doing so allows you to achieve all of your goals. Choosing the appropriate business structure to adhere to is the first step in starting your entrepreneurial journey. A private limited corporation is an option for anyone looking to start a scalable business. With several advantages including restricted liability, a distinct legal entity, simple share transfers, etc., it is the most well-known legal form for businesses.
A private limited company's capital is the sum that its shareholders intend to contribute to the business. The capital amount of a private limited company may consist of paid-up capital or authorised share capital.

A corporation must have at least one lac Indian rupees in authorised share capital before it may begin the registration procedure. Nonetheless, the maximum amount of paid-up capital is subject to a minimum cap.
Private limited companies are subject to a set of rules and regulations that are contained in their MOA and AOA, just like any other business.
The private limited company's master documents, the Memorandum of Association (MOA) and Articles of Association (AOA), establish the rules, rights, and responsibilities of directors and shareholders. There are six clauses in the MOA

• Name Clause: The name was chosen in accordance with Rule 8 of the 2013 Companies Act. It shouldn't be the same as the name of any already-existing business or with

•Registered Office clause: This provision aids in identifying the state in which the Registrar of Companies has jurisdiction.
• Object clause: This clause outlines the company's purpose. All of the tasks or activities that must be completed within the organisation make up the object. The business engages in any activities that are not related to its mission.
• Liability clause: this provision defines the stockholders' liability. The amount that each member has agreed to contribute limits the members' or shareholders' liability in a firm that is limited by shares.
• Capital clause: This provision establishes the most shares that the business may issue.

The set of guidelines for management is outlined in the articles of association, or AOA. It establishes the internal rules that must be adhered to within the company. It includes regulations on share transfers, corporate audits, shareholder voting rights, director appointments, share capital, and more.