Quick Checklist
- Photograph of all the Directors
- PAN Card of all the Directors
- ID Proof of the Directors (Driving License/Passport/Voter ID)
- Electricity Bill or any other utility bill for the address proof of the Registered Office.
Private Limited Company
All you need to know
A Private Limited Company offers limited liability and legal protection to its shareholders. A Private Limited Company in India lies somewhere between a partnership firm and a widely owned public company. It can be registered with a minimum of two people. A person can be both a director and shareholder in a Private Limited Company. The liability of the members of a Private Limited Company (PLC) is limited to the number of shares held by them. A Private Limited Company in India can begin with operations after getting the Certificate of Incorporation. A PLC can be incorporated within 15 working days.
How to start / form / make a Private Limited Company?
Steps to be taken to get a new company incorporated:
- Selection of a suitable name
- Application to concerned ROC
- MOA & AOA
- Filing of the Forms & Documents
Registration of a Pvt Ltd Company in India is complete an online process. Recently the MCA has replaced the earlier SPICe form with a new web form called SPICe+ (SPICe Plus). Hence, Incorporating a Private Limited Company is even easier now .
Do not miss about filing Form INC 20A once you start your company.
Suggested Read: Mandatory Compliances for a Private Limited Company in India and LLP v/s Pvt LTD
caagrawalkanhere.com is an eminent business platform and a progressive concept. It helps in end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. The process of Private Limited Company incorporation & registration is easy, cheap and quick at caagrawalkanhere.com. caagrawalkanhere.com also provides Partnership Registration, HUF, LLP Incorporation and One Person Company registration and Secretarial Compliance Services. You may get in touch with our compliance manager on 0755 276 1432 or email info@caagrawalkanhere.com for free query.
Compliance required by a Private Limited Company
All you should know about necessary compliances
GST Registration
Every Private Limited Company is required to get their GST Registration within 30 days of Business Incorporation in India. GST Registration is needed when the turnover is more than INR 40 lakhs or INR 20 lakhs in Special category states or If the business supplies goods intra-state or Provides goods and services online.
GST Return
Once a Private Limited Company gets registered under GST, it becomes necessary to file GST returns for Private Limited Company. As filing of GST returns is mandatory for all the registered Taxpayers including companies. GST returns can be filed monthly, quarterly or yearly depending upon the types of GST returns form you are filing.
Accounting
Every Pvt Ltd Co. shall maintain proper books of accounts which shall represent an accurate and fair view of the state of affairs of the company. Accounting is necessary for the statutory audit, Annual filing and IT return filing which is mandatory. These books of accounts shall be audited by the auditor appointed by the company.
Statutory Audit
Every Private Limited Company registered under the Companies Act irrespective of its sales turnover or nature of business or capital must have its book of accounts audited each financial year. Thus, the Board of Directors of a Private Limited Company are required by law to appoint an Auditor within 30 days of incorporation and thereafter conduct an audit of its financial statements each financial year.
MAT Audit
It is mandatory for the Pvt Ltd Co. to get their accounts audited under MAT i.e. Minimum Alternate Tax. The objective of the introduction of MAT was to bring into the tax net “zero tax companies” which in spite of having earned substantial book profits and having paid handsome dividends, do not pay any tax due to various tax concessions and incentives provided under the Income-tax Law.
Income Tax Audit
Every Private Limited Company requires to get the tax audits under section 44AB done. The Tax audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax Law and the fulfillment of other requirements of the Income-Tax Law. The tax audit limit under section 44AB is INR 1 Crores. (5 crores where at least 95 percent turnover is made on digital transactions.)
ROC Annual filing
A Private Limited Company is mandatorily required to file 3 forms every year. Filing has to be done regarding submission of documents of financial statement, i.e. balance sheet, P&L account in form AOC 4 and annual return in form MGT-7. Company report about auditor’s appointment to ROC in Form ADT 1. Know more: ROC annual filing
IEC Registration
All the Private Limited Company which are engaged in Import and Export of goods require to register the Import Export Code. IE code has lifetime validity. Importers are not allowed to proceed without this code and exporters can’t take benefit of exports from DGFT, customs, Export Promotion Council, if they don’t have this code.
TM Registration
Registering a Private Limited Company with a name does not provide complete protection to the name or brand name. Ultimate protection for a business name is secured only by Trademark Registration of same. By trademark registration, you may get the ownership of your Pvt Ltd Co. name or brand name or logo etc.
Documents Required for Private Limited Company registration
Specific Requirements
- A Private Limited Company must have a registered office in India. Documents like bank statement or electricity bill should be recent.
- A utility bill, rent agreement or sale deed and an NOC (Non-Objection Certificate) from the landlord with his / her consent to use the office as a registered office of a company must be submitted as well.
Advantages of a Private Limited Company
Points to make your decision easy
No Minimum Capital
No minimum capital is required to form a Private Limited Company. A Private Limited Company can be registered with a mere sum of Rs. 10,000 as total Authorized Share capital.
Separate Legal Entity
A Pvt Ltd Co. is a separate legal identity in the court of the law, meaning assets and liabilities of the business are not same as the assets and liabilities of the directors. Both are counted as different.
Limited Liability
If the company undergoes financial distress because of whatsoever reasons, the personal assets of members will not be used to pay the debts of the Company as the Liability of the person is limited.
Fund Raising
A Private Limited Company in India is the only form of business except Public Limited Companies that can raise funds from the Venture Capitalists or Angel investors.
FDI Allowed
In private Limited Company, 100% Foreign Direct Investment is allowed that means any foreign entity or foreign person can directly invest in a Private Limited Company.
Builds Credibility
The particulars of the company are available on a public database. Which improves the credibility of the company as it makes it easy to authenticate the details
How to Incorporate Private Limited Company
Private Limited Company Registration Process in 5 steps
1
Obtain DSC
2
Reserve Your Company Name
3
Submission of MOA & AOA
4
Get Company’s Incorporation Certificate
5
Get Company’s PAN & TAN
Fill Simple Checklist
A compliance manager will get in touch with you to collect your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for verification. Our team of experts will verify the documents provided by you and take the procedure further. The compliance manager dedicated to you will keep you updated on the progress of Company Registration throughout the process.
Name Approval
Once your documents along with Checklist are submitted, we shall proceed with the application of your Digital Signature and subsequently the approval of name for your Private Limited Company. You may suggest up to two names of your choice. Names should be unique and suggestive of the Company’s business. We will proceed with application for name for your Private Limited Company in Part A of SPICe Plus form.
Registration
We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.
FAQs On Private Limited Company
Get answers to all your queries
A Private Limited Company must have a minimum of two Directors and can have up to a maximum of fifteen Directors. But if you are a sole owner, you can incorporate an OPC as well.
Pvt. Ltd. Co. and LLP have a lot of similarities yet they both are different in many of its characteristics and structures. When you wish to start your business, there are many factors that one needs to think upon before selecting any business structures. However, before selecting any business structure, you may refer LLP vs Pvt Ltd- A comparison between two important forms of organisation in India
It generally takes 8-10 working days to register Private Limited Company in India. The time taken for registration totally depends on the submission of relevant documents by the client and the speed of Government Approvals. To ensure quick and speedy registration, choose a unique name for your Company. The registration fees for the incorporation is inclusive in the package offered to you.
There exists no bar on turnover or capital in private Limited Company unlike One person Company.
Incorporating a company through Simplified Proforma for Incorporating Company electronically (SPICe plus), with eMoA (INC-33), eAOA (INC-34), is the default option and most companies are required to be incorporated through SPICe only.
Minimum two directors are required to incorporate a private limited company. Companies Act, 2013, has introduced the concept of One Person Company (OPC) private limited, in which a single individual can start a private limited company. Thus, if you plan to incorporate OPC, you can incorporate it with only one director.
The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of the proposed Company. Digital Signature application is to be filed to get a DSC.
Reviews
Abdul Shukkoor
100% we can trust CA Agrawal for a business setup as i was relaxed during my company registration "Zaabi Kids Wear Private Limited" and now my dream become reality. Thank you all of CA Agrawal Kanhere for your Team work and your effort and really appreciate it
