Limited companies are of two kinds. They can be classified as (i) Private Limited companies (ii) Public Limited companies.
A private limited company is a form of privately held business governed under the provisions of the Indian Companies Act, 2013. The minimum number of members required to form q private limited company is two and the maximum number of members can go up to 200. In the case of a private limited company, there are restrictions on the transfer of shares. Private Companies are prohibited by their definition to invite the public for a subscription of securities.
A Public Limited Company is governed under the provisions of the Indian Companies Act, 2013. Its stock can be acquired by the public either through an initial public offering (IPO) or via trades on the stock market. A Public Limited Company is strictly regulated and is required to publish its true financial health to its shareholders. It is governed under the provisions of the Indian Companies Act, 2013. Minimum members required forming public limited company is7, there is no limit on the number of maximum members. The minimum number of directors required is 3; the Minimum paid-up capital is Rs.5 lakh.
The following documents are required for the opening bank account of limited companies (both private and public) in the banks:
- A true copy of the certificate of incorporation attested by a Director or Secretary of the company.
- A copy of the updated Memorandum and Articles of Association attested by a Director or Secretary of the company.
- A copy of the Board Resolution passed at a meeting of the Board of Directors (not by circulation) duly certified by the Secretary of the Company for opening the account and operation instructions thereon. The resolution should clearly state the name of the bank, persons authorized to open and operate the account and carry on such other transactions as dealing with securities, powers to draw, accept, endorse, etc.
- Registered Address proof of the company, as registered with the ministry of corporate affairs
- PAN Card of the company or the PAN Card Application Acknowledgement
- Power of Attorney granted to its employees, officers, and managers to transact the business on the company’s behalf
- DIN (Directors Identification Number)
- ID Proof of all the working Directors.