Private Limited Company
Private Limited Company Registration in India
Private Limited Company is governed by the Ministry of corporate Affairs (MCA). Registering a company is easy with AK taxes, as it is done entirely online. To register a company in India requires at least two people to work as directors and shareholders. To register a private company limited to India PAN Director card, proof of address, and bank statement is required along with proof of registered office address.
Section 2 (68) of the Companies Act, 2013 defines a private company as:
A company with a small budget paid as it may be determined, and which by its articles,
- Restricts the right to transfer its shares;
- Unless it is a Private Company, limiting the number of its members to two hundred;
- Prevents any public invitation to register any company securities.
It is highly recommended to get a limited private company registration as this type of company offers limited credit to shareholders with certain restrictions imposed on ownership.
Private Limited Company is the most popular type of business in India. More than 20 lakh companies have been registered in India since October 2020 and 12 lakh companies are considered active. All companies registered in India are governed by the MCA (Ministry of Corporate Affairs) under the Companies Act, 2013.
Requirements to register a Private Limited Company in India
Number of directors 2 people (Up to 3)
Authorized Capital Rs. 1 lakh minimum
Fees paid at Rs. 10,000
NOTE: This is a key requirement that the number of directors may be increased to 15 and the number of shareholders may be increased to 200.
Documents required to obtain Private Limited Registration in India
Identity document to 2 directors and submit the documents listed below:
PAN Card: A copy of the PAN card of the proposed Company directors will be required for Company registration.
Address Proof: Proof of the submitted address must contain the name of the Director as stated on the PAN card and the current address of the Director.
Proof of residence: Proof of residence must also contain the name of the Director as stated on the PAN card and must not be older than two months.
Proof of Registered Office: In addition to providing directors with ID, address, and residential address, proof of the registered office address of the Company must be provided.
- Registered office title deed registered in the name of the company;
- Certified copy of lease/lease agreement on behalf of the company and a copy of the paid receipt for not more than one month;
In addition to the above, the following must also be provided as proof of registered office:
- Authorization from the Landlord (Name referred to in the Electricity or Gas Bill or Water Bill or Property Rite Receipt or Deed) to use the company’s premises as its registered office. This is often referred to as a NOC from Landlord;
- Proof of proof of any service such as telephone, gas, electricity, etc. showing the address of the property in the name of the owner or document, not exceeding two months.
How will AK Taxes help you register a Private Limited company in India?
AK Taxes can help you put a Private Limited Company in India in less than 10 days but this is subject to government scrutiny of receipt of documents.
Step 1: Once the application has been approved a business consultant from AK taxes are coming to you and you understand the needs of your business. And it proposes a business that is right for you.
Step 2: The relationship manager is engaged. Who will collect all the required documents?
Step 3: Apply for a Digital Signature Certificate. At the same time a name request is submitted for approval to the MCA.
Step 4: Once the name request has been approved the merger is written. These merger documents need to be signed by all directors and shareholders.
Step 5: Once signed they are forwarded to the MCA for approval.
Step 6: Once the company has merged the support certificate is issued along with the PAN and TAN directors.
Features of Private Limited Company
To register a Private Limited Company in India is required at least 2 members and not more than 200 members are required in accordance with the provisions of the Companies Act, 2013.
Limited liability to partners
The debt of each shareholder member is limited. In the event that the Company is liable for any loss under any circumstances it means that the shareholder is liable to sell the Company’s assets. His belongings are not in danger here.
A registered private limited company continues to exist in the presence of the law even in the event of death, disintegration, or failure of any member. The life of a company continues to exist forever.
Index of members
A limited private company has a right over a state-owned company as it does not need to keep a list of members while limited public companies are required to keep a list of members.
Number of directors
A limited private company in India is required to have only two directors. With the presence of 2 directors, a limited private company can start with its operations.
The Memorandum of Association represents the company document. The MOA is an official document prepared during the formation and registration process of a company. The MOA clarifies the relationship between shareholders and clarifies the objectives for which the company is built.
AOA sets out the rules and guidelines for the internal management of the Company. The functions, rights, and administrative powers of the company are specified in AOA. An association article is part of the Memorandum of association.
Benefits of registering a Private Limited Company in India
Before starting a business it is important to determine the company’s goals, business structure, and performance based on the company’s chosen strategy. Limited private company is a private organization and is loved by many entrepreneurs. A limited private company registered in India can own up to 50 shareholders and limit the owner’s obligation to their shares and restrict public trading shares.
When businesses see unforeseen financial problems and are about to close, shareholders of a limited private company face the risk of losing their assets. Only investments when starting a business are lost and the assets of the director are safe.
Limited private companies are able to easily handle budget funding as there are differences between shareholders and directors. Venture capitalists and private equity funds are likely to invest in any other framework.
Limited private companies in India enjoy more credit opportunities than LLPs as there are more credit options. Banks provide financial assistance to limited private companies than OPCs and LLPs as the issue of credit agreement and flexible loans remain constant. Banks and financial institutions are more receptive to limited private companies than partner companies.
A limited private company is required to make more information about property, operations, and finances available to the Registrar of Companies. This information eventually becomes public. Thus vendors, lenders, employees can find important information in the company such as authorization, name of directors, registered office, etc. This information makes businesses more trustworthy than the companies that made this information.
Limited private companies in India may be sold or transferred, in part or in full to other persons or entities without interruption of the current business.
If a business is developing a product on a global scale and aims to increase global operations, it is important to find an investment and how to work with foreign companies. One of the advantages of limited private companies in India is that they 100% pass through the default route, which means there is no need for any government permit for foreign companies to invest in India. In partnership, LLPs need to be approved by the government.
Scope of multiple opportunities
Successful entrepreneurs are always looking for opportunities wherever they can. Limited private companies have the potential to seize opportunities as the business grows over time and land ownership and partnerships cannot continue as they are bound.
As limited private companies are governed by the Companies Act 2013 and are required to follow all strict procedures, disclose procedures, and comply with various legal requirements, they are highly organized in creating value.
Limited private company offers many advantages over other businesses, it is always good that the registration is done professionally to avoid any discrepancies.
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Compliance with the laws of Limited Private Company in India
All companies registered in India are required to maintain compliance under various laws. Failure to maintain compliance may result in disciplinary action or dismissal of directors.
AK Taxes can assist you with the accounting solution and the maintenance of the Company’s official compliance at an affordable price.
Except for mandatory compliance that needs to be done depending on the company’s timeline. Here are some important principles to keep in mind.
Appointment of official auditor– 30 days after installation
The Board of Directors must appoint a working Chartered accountant within 30 days of Installing a Limited Private Company in India.
Starting a Business-180 days of installation
The capital referred to in the MOA (Memorandum of Association) will be deposited in the bank and the implementation of the business certificate will be obtained from the Ministry of Corporate Affairs.
Income Tax Completion
Limited private companies registered in India must complete an annual tax return on Form ITR 6.
Annual company profits
Companies registered in India are required to complete an annual MCA return annually informing AOC 4 and MGT 7.
The DIN KYC process must be completed each year for the directors of a limited private company.
Other event-based compliance
This is due to the occurrence of certain events. There are papers to be done for the same and various deadlines to be complied with. In the event of non-compliance with the missed rules or deadlines, there are penalties, additional fines, or even litigation. Therefore, it is necessary to trace the occurrence of such events and meet the tome.
- Change to Director / KMP
- Increased authorized share price
- Increased budget paid
- Change at registered office
- Switch to safe rot
- Change in company name.
Frequently Asked Questions
Authorized capital is the maximum number of shares that a company can issue. On the other hand, the amount paid is the amount of shares issued by the company to the shareholders. The authorized principal amount may be increased at any time after consolidation to exclude additional shares from shareholders.
Limited liability is a condition of sole liability for a limited amount of company debt. Unlike ownership and cooperation, shareholders’ debt in respect of corporate debt is limited.
Once the company is merged, the current account needs to be opened in the company name in order to get things done. Your adviser will guide you through the process of selecting the bank from which you want to open an account and obtain documents such as a certificate of support, Memorandum and Organization Documents, board amendments, a copy of the PAN budget letter, and a usage bill.
Yes, NRIs, outsiders, and foreign organizations can register a company and invest in India, subject to the Foreign Direct Investment procedures set by the RBI. However, business investment laws in India require that one Indian person be part of a company on the Board of Directors.
You can use the AK Tax Company search name tab to search for names found in India. It is important to note that AK taxes will automatically offer the available options, based on the same names already registered.