Points To Note Before Incorporating A Private Limited Company

  • May 28, 2022
  • Dushyant Sharma
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A lot of work goes into incorporating a Company. Hence, one must make sure that it is done right to avoid any hassle in the future. Firstly, one must decide what kind of Company the entrepreneur wants to start. After which the process of incorporation begins. Certain points must be noted before incorporating a private limited company.

Name of the Company

The name of the Company is one the most important and foremost steps taken before incorporating a Company. The name of the Company is the first element of the Company that the consumers are brought attention to. Hence, the name can either sustain the attention of the consumer or cause negative affects.

The name sometimes also suggests the product or services that the Company has to offer. In addition, it may even hint at the business objective of the Company. Therefore setting the right tone of the name of the Company is important.

The name as a whole should be good for business and the growth of the Company, leaving no room for confusion amongst the consumers or even the workers.

Business Objective

The business objective of the Company is the running motivation for the workers throughout the working of the Company. Hence, the objective must be clear and concise bringing to the light the reason of existence of the business. Business objective is the lifeline of the Company and must be clearly defined. The main objective must lead to the growth and success of the Company.

Memorandum of Association or Articles of Association

Drafting a Memorandum of Association or Articles of Association is generally the next step after naming the Company. It is termed as the constitution of the Company and includes the rules and regulations of the Company, the issue of shares, share capital, management decisions, directors meetings, clauses, etc.

Therefore, it is important to draft the Memorandum of Association or Articles of Association by an expert.

Share Holders and Capital

There must be a minimum of two shareholders and a private limited Company can have upto 200 shareholders.

The company must be formed with a stated, nominal share capital divided into shares of fixed amounts. Minimum authorized capital of Indian Rs. 100,000 is required to form a private limited Company in India.

The above points are to be noted when incorporating a private limited Company. The noteworthy points for any other Company incorporation differ from private limited Company and vary by states.


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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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