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Companies Act, 2013 (India)

This act governs the incorporation, regulation, and winding up of companies in India. It specifies the procedures for registering a private limited company with the Registrar of Companies (ROC)

A private limited company is a business entity where ownership is restricted to a small number of shareholders, and shares cannot be publicly traded. Here the shareholder liability is limited to their investment in the company and can have up to 200 shareholders. The shares are not publicly traded. The company’s registration and operations are governed by the Register of Companies (ROC). The directors have to submit their Director Identification Number (DIN) and Digital Signature Certificate (DSC) for incorporation. Documents like the Memorandum of Association (MoA) and Articles of Association (AoA) have to be submitted in the MCA portal. Post registration, the Ministry of Corporate Affairs (MCA)will provide the incorporation certificate and will display the company’s details on the website.

A private limited company is a business entity where ownership is restricted to a small number of shareholders, and shares cannot be publicly traded. Here the shareholder liability is limited to their investment in the company and can have up to 200 shareholders. The shares are not publicly traded. The company’s registration and operations are governed by the Register of Companies (ROC). The directors have to submit their Director Identification Number (DIN) and Digital Signature Certificate (DSC) for incorporation. Documents like the Memorandum of Association (MoA) and Articles of Association (AoA) have to be submitted in the MCA portal. Post registration, the Ministry of Corporate Affairs (MCA)will provide the incorporation certificate and will display the company’s details on the website.

Limited Liability Protection

The legal liability of a private limited company's stockholders is restricted. You will be responsible for paying the liabilities of the company as a shareholder to the extent of your contribution. This protects your personal assets to cover the company's debts.

Limited Liability Protection

The legal liability of a private limited company's stockholders is restricted. You will be responsible for paying the liabilities of the company as a shareholder to the extent of your contribution. This protects your personal assets to cover the company's debts.

Limited Liability Protection

The legal liability of a private limited company's stockholders is restricted. You will be responsible for paying the liabilities of the company as a shareholder to the extent of your contribution. This protects your personal assets to cover the company's debts.

Limited Liability Protection

The legal liability of a private limited company's stockholders is restricted. You will be responsible for paying the liabilities of the company as a shareholder to the extent of your contribution. This protects your personal assets to cover the company's debts.

Limited Liability Protection

The legal liability of a private limited company's stockholders is restricted. You will be responsible for paying the liabilities of the company as a shareholder to the extent of your contribution. This protects your personal assets to cover the company's debts.

Limited Liability Protection

The legal liability of a private limited company's stockholders is restricted. You will be responsible for paying the liabilities of the company as a shareholder to the extent of your contribution. This protects your personal assets to cover the company's debts.

As per MCA guidelines, a private limited company must be registered with at least two directors and shareholders. While stockholders may be either natural people or corporate entities, directors must be people. Additionally, a registered office address in India is mandatory. The following criterias must be met while filing for private limited company registration:

  • The applicant’s minimum age should be eighteen years old
  • The applicant must be a citizen or resident of India
  • There should be between 200 and 300 members
  • Minimum number of Directors or shareholders must be 2

As per the MCA, a checklist has to be met for registering your company. Here is a clear outline of a checklist for private limited company registration to follow:

  • At least 2 Directors
  • Directors and shareholders can be the same person
  • All the Directors should have DIN and DSC
  • Have the minimum Authorised share capital
  • Have the minimum Paid up share capital
  • Draft and MoA and AoA
  • Need details of the company working address
  • NOC and Rental Agreement from the landlord

The following necessary documents are crucial for Private limited company registration in India:

  • Photographs of directors in passport size
  • Residential address proof for directors
  • Photo identification proof for directors
  • Sample signatures
  • A self-declaration confirming directorship in other companies
  • Lease/Rent agreement for the registered office
  • Letter of no objection from the property owner
  • Aadhaar card
  • PAN card
  • Director Identification Number (DIN)
  • Digital Signature Certificate (DSC)
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)

Documents necessary for filing SPICe+ form (INC-32) for the registration of a private limited company are outlined as follows:

A. For Indian Nationals serving as directors and subscribers:
  • Affidavit on stamp paper: a declaration by all subscribers affirming their intention to become shareholders of the company
  • Office address proof like the Rental Agreement or Ownership Deed
  • Electricity bill, water bill and other utility bills of the last two months
  • Copy of approval if required
  • Trademark registration details
  • NOC from property owner
  • Proof of identity and address
B. Required Documents For Foreign Nationals serving as directors/Shareholders
  • Passport: Proof of identity
  • Address proof: Accepted documents include a driving license, residence card, bank statement, or government-issued identification with a valid address.

Types of Private Limited Company

In India, private limited businesses are differentiated into different types based on share distribution and other aspects. Here are 3 different types of PVT ltd Companies:

Companies Limited by Shares

These are the most common types of private limited companies.In this type the company has a share capital. And the liability of the shareholders are capped based on the quantity of unpaid shares.

PVT Companies Limited by Guarantee

This type of company does not have a share capital. The firm's members commit to donate a specific sum to the company's assets in the event that the company is wound up.

Unlimited Company

In this type there is no limit on the liability of the members. This type is uncommon as it puts its members at greater risk.

The characteristics of a Private Limited Company include restricted share transfers, a separate legal entity status, and limited responsibility for shareholders. Here is a clear outline of the same:

  • It is a separate legal entity with a Limited Liability Structure
  • Property and assets can be owned under the name of the company
  • Legal Business activity can be conducted under the company name
  • There is no minimum paid up capital for registering a Private limited company
  • A private limited company is separate from the shareholders
  • The shareholders enjoy limited liability with respect to the shares in the company
  • The total number of shareholders is limited to around 200
  • Individuals and corporate entities can be shareholders
  • The Companies Act of 2013 governs the private limited company complaints
  • The private limited company should file legal requirements like annual financial statements
  • Registered private limited companies should hold annual general meetings
  • Shares of the private limited company cannot be traded publicly
  • Transfer of shares is highly restricted and requires approval of existing shareholders and the board of directors

To register a private limited company in India, you need to obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed directors, and then file the incorporation documents with the Ministry of Corporate Affairs (MCA) through the online SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form. Vakilsearch offers an easy, three step process for business registering:

step
1. Name Approval Process

After you finalise an unique name for your company our team will check for the name availability we will file a RUN form or SPICe-A form. Post name approval our team will file SPICe-B form.

2. Get Your (DSC) and (DIN)

We file form DIR-3 and help you to procure your Director Identification Number (DIN) and Digital Signature Certificate (DSC), which are essential for online document filing.

3. Filing and Incorporation

We will file your Incorporation Documents like MoA, AoA, Spice+ form and will make sure that your company gets its PAN and TAN ensuring all necessary paperwork is submitted accurately. MCA provides the certificate of incorporation post registration.

Private Limited Company Registration Fees

There are several criteria that determine the total fees structure to form a private limited business in India. Fees like stamp duty and government fees are required. Professional fees will be assessed if you engage any experts. Apart from this, applications for filing DSC, DIN, Notary fees, PAN, TAN and GST registration should be accounted for. An all-in-one platform for online private limited company registration in India is offered by Vakilsearch. Depending on your demands, you can choose from our affordably priced packages and begin the registration process.

Conduct the Initial Board Meeting

As per Section 173(1) the companies Act 2013 registered private limited company should conduct its first board of directors meeting within 30 days of incorporation.

Open a Bank Account

Having a current account under the company’s name is crucial for business operations.. As per law, a company is a legal entity and the financial transaction should be conducted in its name not in the name of an individual.

Have an Official Address

With respect to Section 12 (1) of the Companies Registration Act of 2013 registered business should have an official address within 30 days of incorporation. This address is the point of contact for receiving communications from government authorities. The official address should be informed to the resistor within the first 30 days of company incorporation.

Branding and Legal Compliance

Registered company name should be displayed in all the business locations. The local language should be used in the billboards. Seals and Letterheads should be prepared.

Appoint an Auditor

The board of directors should appoint an auditor as per Section 139(1) within 30 days of company registration.

Interest Disclosure and Statutory Compliance

In the first board meeting, all the directors of the company should declare their interests with respect to other companies. According to Section 184 of the Companies Act of 2013, this is required. Companies are required by law to keep a statutory register at the registered office.

Share Certificate Issuance

Share certificates must be issued to shareholders within 60 days from the date of incorporation, or in the case of additional share allotments, within 60 days from the allotment date.

Bookkeeping and Financial Reporting

As per Section 128, every company must maintain accurate and fair books of accounts, adhering to the double entry system and accrual basis of accounting.

Commencement of Business Certification

A company needs to get a certificate of commencement of business within 180 days. A disclosure attesting to each subscriber’s payment of the outstanding balance on their shares must be filed by directors.

Copyright Registration

For a private limited company, copyright registration is essential to protect its original works, such as software, manuals, logos, promotional materials, and other creative content. We have a dedicated team of IP lawyers who can help in copyright registration and other IP related issues.

Professional Tax Registration

Professional tax is a state-level tax imposed on professionals and businesses in India. Employers are required to deduct professional tax from the salaries of employees and remit the same to the state government. The tax rates are fixed by the state government and vary for other states. Our team of chartered accountants can help in the registration and filing of Professional tax in India.

Professional Tax Registration

Professional tax is a state-level tax imposed on professionals and businesses in India. Employers are required to deduct professional tax from the salaries of employees and remit the same to the state government. The tax rates are fixed by the state government and vary for other states. Our team of chartered accountants can help in the registration and filing of Professional tax in India.

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