Private Limited Company is the most prevalent and popular type of corporate legal entity in India. A Private Limited company’s registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014.
Everything you should know about a Private Limited Company
- One of the advantages of owning a Private limited company is that the financial liability of shareholders is limited to their shares. Therefore, if a private limited company is in financial trouble and has to discontinue the operations of the company, shareholders will not risk losing their personal assets and liabilities, and will be restricted to the shareholding in the company.
- It has continued existence, even after the owner dies or leaves the business. Private limited companies are incorporated with ideation of no effect. When a business incorporates, it becomes an independent legal entity, meaning it can sue or own assets separate from the company owner.
- In a private company, shares can be sold or transferred to other people by the choice of the owner. Shares of such a company are owned by founders, management or a group of private investors. Shares here are not sold in the open market. Thus there is less number of shareholders. This means less complexity and confusion in decision making and management.
- There are high chances of getting a sound seedfund followed by multiple level funding for the company because investors prefer investing in Private limited companies as it has more sustainability and transparency.
What is the entire process of registering a Private Limited Company?
A Private Limited Company becomes a separate legal entity to run. The company needs a minimum of two directors. Get Directors’ DIN, PAN Card and address proof in order to begin with. Ask for Assistance
I have just incorporated my company. What are the MUST compliance(s) that I have to pay for?
Once the company gets incorporated, the Appointment of the first auditor, Application for Certificate of Commencement of Business, Annual ROC Compliances, Holding of Annual and General meetings, Director(s) KYC, Income Tax filings become some mandatory compliance(s) to follow. Calls for an Expert
Is it mandatory to have GST even after registering a company?
A new start-up registered under Startup India Scheme needs mandatory GST registration. If you are in E-commerce then acquiring GST is committal. Companies incorporated in other special category states when exceeding the limit of an annual turnover of INR20 lakhs must have GST. Get started
What is the procedure for Online registration of a company in India?
The incorporation of the Company is simpler online. Get Directors’ DIN, PAN Card and address proof in order and our team will assist you in getting it done within 7 days. You will be needing an expert to do the certification and other necessary compliance for faster and easier process.
I am already running a sole proprietor business. Is it possible to change it into a Private Limited Company?
Yes, it is possible to go for conversion. You will need to have an agreement which will be a sale agreement between the parties. An MOA stating the sole proprietorship takeover, the minimum share capital of INR 1, 00,000 are some additional requirements, to begin with.Talk to our expert for more details.
How can I change the nature of my business?
Yes, it is possible to go for conversion. You will need to have an agreement which will be a sale agreement between the parties. An MOA stating the sole proprietorship takeover, minimum requirements of the business are some additional requirements, to begin with.Talk to our expert for more details
Is it possible to change the auditor?
Yes, the companies ACT 2013, allows removal or change of auditor before his term completion. Resignation and removal by passing a special ordinance are the two ways to follow. Get started
What is ADT-1? Is this compliance mandatory for a Private limited company?
It is a form to inform the Registrar of Companies about the appointment of an auditor after its first Annual General Meeting. Every Company irrespective of their turnover and nature are required to appoint an auditor.
What is the Company name search? Why is it important for new company registration?
Registrar of Companies expects all the applicants to follow a certain guideline before a name is applied. The applied company name is suggested to have a Brand Name, Business Activity, title (LLP, Pvt. Ltd.).New companies are entitled to go under the process as it is the first step to register the business.Check for more updates
Documents required for Private Limited Company Registration.
- Minimum 2 Directors (One of the Directors must be Indian Resident)
- Minimum 2 Shareholders
- PAN Card of Directors
- DIN of Directors
- Address Proof of Firm
- DSC (Digital Signature Certificate)
- Minimum Authorised Share Capital 100,000 (INR One Lac)
- Certificate of Incorporation
- DIN of Directors
- Bank Account Opening Document Support
- Digital Signature of Directors
- PAN Card
- Customized Incorporation Master File
- MOA + AOA
- Company TAN/TDS Number
- GST Certificate (If Needed/Applicable)
- Application filling for Certificate of Commencement of business
- Assistance with further compliances