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Private Limited Company

Private Limited Company Registration

Private limited company registration means a company that is incorporated as a private company as per section 2 (68) of Companies Act, 2013. A private company has the maximum number of members 200 except its former employees and present employees. More than two persons who own shares jointly are treated as a single member.  A private company can’t invite to the public for the subscription of its shares.

A private company is required to add the word “Private Limited” or “Pvt. Ltd.” to the end of its name. A private company should have at least two members and two directors. The private company has the right to issue debentures to any number of persons.

A private limited company registration is restricted to transfer of its shares but as per pre-emption clause if any member of Private Company wants to transfer its shares then such shares firstly offer to existing member of company, if existing members are not ready to take shares then such shares can be offered to outside person unless otherwise provided in articles. The price of such shares shall be determined by the director and auditors of the company and as per the pricing formula given in articles.

For the incorporation of private company SPICe,  SPICe MOA, SPICe AOA is to be the file with ROC. Stakeholders can avail DIN up to 3 directors, name reservation, incorporation of a company, and allotment of PAN and allotment of TAN with the help of Form SPICe.

Basic Features to Read before starting private limited company:

private limited company registration
  1. Incorporation of private limited company:

MCA provides the facility for the incorporation of a private limited company. For incorporation, firstly apply for name through RUN (RESERVE UNIQUE NAME) on the MCA portal. After the availability of name, we should file incorporation form i.e. Spice 32, INC 33(for e-MOA), INC 34(for e-AOA) and attach various required documents for incorporation of a private company in SPICe 32.

    A.Apply For name through RUN Web Form

For incorporation of private limited company registration, firstly we should check the availability of name on the MCA portal after that we should apply for name through RUN web form on the MCA portal along with fee RS.1, 000. On submission of RUN web form MCA personnel should check that the name is unique and not similar to other existing companies and trademark. After that, if the name is unique and not similar than MCA personnel reserve the name for the company and intimate through e-mail. After the reservation of name, we should incorporate the company within 20 days from the date of approval.

    B.Director Identification Number

Every person who wants to become a director in a company shall have a valid Director Identification Number(DIN).  For obtaining DIN he/she shall make an application in form DIR-3 or in SPICe.

  C.Make application in SPICe form for incorporation

  • For the incorporation of the company, we should make an application in the SPICe form. In case incorporation of the company having more than 7 subscribers or any of the subscribers of MOA and AOA a signing a place outside India than MOA and AOA shall be file along with Spice form i.e. INC32. Or in case a company has less than 7 subscribers we should file INC 33(e-MOA) and INC34 (e-AOA).
  • In SPICeform, we can avail DIN up to 3 directors, name reservation, incorporation of a company, allotment of PAN and allotment of TAN with the help of form-SPICe. Maximum 3 director’s particulars are allowed in the SPICe Form.
  • There is no requirement to file form INC-22 in a case the registered office address is the same as the correspondence registered address of the company.
  1. Advantages & disadvantages:

          Advantages

  • Private company has perpetual succession.
  • A private company can easily borrow money.
  • In a private companies, liability of members is limited.
  • The private company is easy to incorporate.

          Disadvantages

  • In a private company, there is no personal control on a decision.
  • To start a private company there is minimum of 2 members are required.
  • A private company cannot issue its shares in public.
  • In private company no other person can invest capital only partners can invest in his company.
  1. Directors of private limited company:

A person who attained the age of 18 can become the director of a company. In a private Limited company, there should be minimum of 2 directors. A maximum number of directors in a private limited company shall be 15; however, it can be increased by passing a special resolution.

  1. Members required to start a Private Company:

For Private Limited Company minimum two members are required to start a business. A private company has a maximum of 200 members except for its former employees and present employees. In case two or more person holds shares jointly, then for this purpose treated as single-member.

  1. Capital requirement for private limited company:

According to companies act 2013, there is no minimum and maximum capital required for private limited company.

  1. Annual Compliances for Private Company:

There is some mandatory compliance that a private company must ensure.

  • Minimum 4 Board Meeting to be held in every financial year.
  • Appointment of an auditor in Form ADT-1.
  • Hold Annual General Meeting every year within 6 months from the close of the financial year. And first AGM is to be held within 9 months from the close of first financial year.
  • File financial statement in form AOC-4 within 30 days of holding of Annual General Meeting.
  • File annual return in form MGT-7 within 60 days of holding of Annual General Meeting.
  • A statutory audit report of annual accounts audited by Chartered Accountant at the end of the financial year.
  1. Private limited company v/s Public company:

Private limited company registration cannot issue its share to the public whereas a public company can issue its share to the public. In a private companies, outsiders cannot invest in a company whereas in public company an outsider can invest in a company. The main difference between a private company and public company is that the share of a public company is traded in stock exchange while private company shares are not traded

GST REGISTRATION
Following registered persons not required to file GSTR 1, 2 and 3 such as:

Goods and Services Tax (GST) is an indirect tax applicable to the supply of goods and services. It is a comprehensive, multistage, destination-based tax. It has subsumed almost all the indirect taxes except a few state taxes. It is collected from point of consumption and not point of origin like previous taxes.

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TRADEMARK REGISTRATION
Documents attach in trademark application:-

A trademark can be registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India under Trademark Act, 1999 to protect the identity of any goods and services.

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income tax
Some basic information about Income tax

An income tax is a tax imposed on individuals or entities commonly known as taxpayers that varies with respective income or profits. Income tax generally is computed on taxable income which is calculated after various deductions. Taxation rates may vary by type or characteristics of the taxpayer.

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Frequently asked questions on Private Limited Company

1.How many partners are required for start a private limited company?

Ans. There are minimum 2 partners and maximum 200 partners are required for start a private limited company

2.Is private limited company can issue his shares in public?

Ans. No a private limited company cannot issue its shares in public.

3.How much capital is required to start a private limited company?

Ans. There is no minimum capital required to start a private limited company.

4.What are the documents required to start a private limited company?

Ans. Documents required to start a private limited company are as follows-

  • Utility bill of registered office not older than 2 months.
  • Bank statement of all subscribers and directors for their residential proof, further it should not be older than 2 months (Optional attachment- electricity bill/telephone bill/mobile bill).
  • Aadhar card, PAN card of all subscribers and directors in legible format.
  • Rent agreement for registered office (if it is rented).
  • No objection certificate from the owner of the registered office.
  • Driving license of all subscribers and directors for identity proof.
All documents should be scanned in legible format and size of per document does not exceed 30 Kb.

5.Is private limited company has separate legal entity?

Ans.Yes, a private limited company has it’s separate legal entity

6.Difference between private limited company and partnership firm?

Ans. Partnership have unlimited liability whereas private limited company have limited liability. In partnership firm it is not necessary to register but in private limited company it is necessary to register. Private limited company required to obtain approval of its name but in case of partnership firm there is no requirement for name approval. In private limited company there are maximum 200 partners but in partnership firm maximum 20 partners are required.

7.Can private limited company converted into other company?

Ans. Yes, a private limited company canbe converted into other companies.

8.Who can invest in private limited company?

Ans. Only members can invest in private limited company no outsider can invest in private limited company.

9.What is the annual compliance for private limited company?

Ans. There is some mandatory compliance that private company must ensure-

  • Minimum 4 Board Meeting to be held in every financial year.
  • Appointment of Auditor in Form ADT-1.
  • Hold Annual General Meeting every year within 6 months from the close of the financial year. And first AGM is to be held within 9 months from the close of first financial year.
  • File financial statement in Form AOC-4 within 30 days of holding of Annual General Meeting.
  • File Annual Return in Form MGT-7 within 60 days of holding of Annual General Meeting.
  • Statutory audit report of annual accounts audited by Chartered Accountant at the end of the financial year.
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Incorporation Company Fees only 7000/-

ONE YEAR PACKAGE FOR PRIVATE LIMITED COMPANY

₹ 10000

BASIC

Company Incorporation Filing Free
Memorandum and Articles
DIN and DSC
Consent of Directors (DIR 2)
PAN and TAN Application
First Board Minutes
First ROC Annual Filing (AOC-4 & MGT-7)

₹ 15000

STANDARD

Company Incorporation Filing Free
Memorandum and Articles
DIN and DSC
Consent of Directors (DIR 2)
PAN and TAN Application
First Board Minutes
First ROC Annual Filing (AOC-4 & MGT-7)
GST Registration
1 Year minutes
1st Year IT Filing
1st Year Director KYC
MSME Registration

₹ 25000

PROFESSIONAL

Company Incorporation Filing Free
Memorandum and Articles
DIN and DSC
Consent of Directors (DIR 2)
PAN and TAN Application
First Board Minutes
First ROC Annual Filing (AOC-4 & MGT-7)
GST Registration
1 Year minutes
1st Year IT Filing
1st Year Director KYC
MSME Registration
12 Months GST Filing
1st Year Directors Report and Notice of AGM
1st Year Accounting for GST purpose.

₹ 50000

ADVANCED

Company Incorporation Filing Free
Memorandum and Articles
DIN and DSC
Consent of Directors (DIR 2)
PAN and TAN Application
First Board and AGM Minutes
First ROC Annual Filing (AOC-4 & MGT-7)
GST Registration
1 Year minutes
1st Year IT Filing
1st Year Director KYC
MSME Registration
12 Months GST Filing
1st Year Directors Report and Notice of AGM
1st Year Accounting in Tally ERP 9 (Full Transactions)
TDS return filing
Book Keeping
Drafting of Balance Sheet and Annual Accounts of Company
Share Transfer
Appointment of Auditor/Director filing to ROC

Note
Private Limited Company
Basic Features to Read before starting private limited company

Private company is required to add the word “Private limited” or “Pvt. Ltd.” to end of its name. Private company should have at least two member and two directors. Private company have right to issue debentures to any number of persons.

Read More
Public Limited Company
Features of Public Limited Company

MCA provides the facility for incorporation of public limited company. For incorporation, firstly apply for name through RUN (Reserve Unique Name) on MCA portal. After availability of name from ROC we should file incorporation form i.e. Spice 32, INC 33(for eMOA), INC 34(for eAOA), .

Read More