Private Limited Company Registration
Private Limited Company is defined as a company that is privately held for small businesses. It is the most common type of business and has less formalities when compared to other legal entities. The Companies Act 2013 and the Companies Incorporation Rules 2014, gives the regulations for the private limited company in India. In a Private limited Company the liability of the members is limited to the amount of shares that is respectively held by them. The Private limited company can come into operation only if it contains two Directors. Also the shares of Private limited company cannot be publicly traded.
Characteristics of Private limited Company
- The individual partners have limited liability.
- The Private limited company has perpetual succession. Even the demise of any of the individuals do not affect the existence of the company.
- If the Private limited company incurs into losses the personal assets of the individuals are not touched.
- The Board of Directors manage the Private limited company.
- The Private limited company has no need to keep an index of its members.
- Minimum two shareholders and the Directors are necessary.
- Registered office address is necessary for the proposed company.
- Paid-up capital and the authorized capital should be decided.
- The DSC is necessary for both the Directors and the subscribers.
- DIN is necessary for Directors.
Documents required for Private limited company registration
If the Proposed Director or Shareholder is an Indian Citizen, then submit
- Aadhaar card
- PAN Card
- Address proof (Recent Bank statement or Mobile phone bill or electricity bill).
- Passport size photo
- If the Proposed Director or Shareholder is a foreign national, then submit
- Photocopy of the passport
- Address Proof
- Nationality proof
- Two passport sized photographs.
Registered office address
- The rental agreement is necessary if the office is on rental.
- Electricity bill
- The No-objection certificate (NOC) is required from the landlord if the place is not on rent.
The minimum paid-up capital for the private limited company is Rs.1 lakh. The amount can be made higher as prescribed by the MCA.
No professional or educational qualification is needed to become Director or Shareholder. Any person who has sound mind, major of age and citizen of India can start a company.
Yes. The private limited company can take the FDI.
Here are ROC compliances for Private limited company.
The Board of Directors appoint First auditor within 30 days of Incorporation who holds the office till the conclusion of 1st AGM.
Form MGT-7 should be filed by all the companies which are registered every year in India. It is an electronic form. It is provided by the MCA to fill annual return details. From the date of Annual General meeting, the due date for filing the MGT-7 is 60 days.
Form AOC 4:
Balance sheet should be filed for Private limited company. It should be filed along with the profit or loss account and Director Report in this form within 30 days of Annual General Meeting.
DSC is Digital Signature Certificate. These are valid as per Information Technology act. It is used for signing e-forms which are required to file MCA.
MOA is Memorandum of Association. It gives the constitution of a company containing certain fundamental matter. For every existence of a company this serves as basic document. The purpose of MOA, is to display the permitted range of activities of a company. It provides the guidelines for the creditors and the shareholders.
AOA is Article of Association. The AOA gives the rules and regulations for the internal management of the company. The documents also indicates that what are the tasks to be accomplished within the company, including appointing the Directors and handling of financial records.
The Director is entrusted with the responsibility of managing the company in an efficient manner.
DIN is Director Identification Number. Any person who has the intention of becoming the Director of the company requires DIN. The DIN which has the approval will has lifetime validity.
Yes. An individual can become Director in more than one company.