Company formation

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Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 FORMS REQUIRED FOR REGISTRATION OF COMPANY

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 June 2014 http://www.mca.gov.in/MinistryV2/RegisterNewComp.html

Check out from above link of MCA site.

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2014 WHETHER PVT. LTD CAN HOLD FEW PROPRIETORS FOR DIFFERENT BUSINESES AT THE TIME OF FORMATION

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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19 July 2024 In India, a Private Limited Company (Pvt. Ltd.) is governed by the Companies Act, 2013, and it is structured with specific rules regarding ownership and management. Here are some clarifications regarding your query:

### Multiple Proprietors in a Private Limited Company:

1. **Nature of Ownership:**
- A Private Limited Company must have a minimum of two shareholders (proprietors) and can have a maximum of up to 200 shareholders.
- These shareholders can be individuals, companies, or any other legal entities.

2. **Business Activities:**
- A Private Limited Company can engage in multiple businesses or activities under its umbrella once it is incorporated.
- There is no restriction in the law against a Private Limited Company holding different business interests or even subsidiaries engaging in varied sectors or activities.

3. **Formation and Shareholding:**
- At the time of formation, the company issues shares to its shareholders (proprietors) based on the contributions or investments they make.
- The Articles of Association (AoA) and Memorandum of Association (MoA) of the company outline the scope of business activities and the rights and responsibilities of the shareholders.

4. **Management Structure:**
- The management of a Private Limited Company is typically overseen by directors appointed by the shareholders.
- Directors may or may not be shareholders themselves, but they are responsible for the day-to-day operations and decision-making of the company.

### Important Considerations:

- **MoA and AoA:** The MoA and AoA of the Private Limited Company should clearly outline the objectives of the company and any specific restrictions or conditions related to its activities.

- **Shareholders' Agreement:** If there are specific arrangements among shareholders regarding their investments, roles, or responsibilities, these can be documented in a shareholders' agreement.

- **Compliance:** Ensure that all activities and transactions of the company comply with the provisions of the Companies Act, 2013, including filing of statutory returns, maintaining proper accounting records, conducting board meetings, and complying with tax regulations.

### Conclusion:

Yes, a Private Limited Company can have multiple shareholders (proprietors) at the time of its formation, and these shareholders can collectively hold interests in different businesses or activities conducted by the company. The key is to ensure that all actions are in compliance with the legal framework and the company's governing documents. If there are specific complexities or unique arrangements, consulting with a corporate lawyer or chartered accountant can provide tailored advice to meet the company's needs and objectives.

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