Description
Private Limited Company(Pvt Ltd)
Online Company Registration in India is formed lawfully with limited liability or legal protection for its shareholders but that places restrictions on its ownership.
A Private Limited Company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the number of shares respectively held by them. Shares of Private Limited Company cannot be publicly traded.
Online Company Registration in India is the simplest and a very popular form of Business Registration in India. It can be registered with a minimum of two people. Limited liability protection to shareholders, ability to raise equity funds, separate legal entity status make it the most recommended type of business entity for millions of small and medium-sized businesses that are family owned or professionally managed.
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Advantages of Private Limited Company
Separate Legal Entity – A private limited company is recognized as a separate entity legally with perpetual existence. It can have a PAN number, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.
Limited Liability – Private Limited Company has this feature of limited financial liability of all the shareholders. The liabilities are limited to their shares only. This feature protects the personal assets and income of shareholders at times of any financial crisis faced by the company. Also, it gives the company more liberty of taking risks.
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.
Tax Advantages – They pay tax on taxable profits and are exempted from higher personal income tax rates.
Easy Transferable Ownership – The shares and other interest of any member in the Company shall tend to be a movable property and can be transferable in the manner so provided by the Articles of such company. Therefore, it is easier to subscribe or leave the membership of the Company. Also it is easier to transfer the ownership.
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
Private Limited Company Compliance
Appointment of Auditor – Auditor will be appointed for the 5 (Five) years and form ADT-1 will be filed for 5-year appointment. The first Auditor will be appointed within one month from the date of incorporation of the Company.
Statutory Audit of Accounts – Every Company shall prepare its Accounts and get the same audited by a Chartered Accountant at the end of the Financial Year compulsorily. The Auditor shall provide an Audit Report and the Audited Financial Statements for the purpose of filing it with the Registrar.
Filing of Annual Return (Form MGT-7) – Every Private Limited Company is required to file its Annual Return within 60 days of holding of Annual General Meeting. Annual Return will be for the period 1st April to 31st March.
Filing of Financial Statements – Every Private Limited Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting.
Annual General Meeting – It is mandatory for every Private Limited Company Company to hold an AGM in every Calendar Year. Companies are required to hold their AGM within a period of six months, from the date of closing of the Financial Year.
Preparation of Directors’ Report – Directors’ Report will be prepared with a mention of all the information required under Section 134.
GST Return Filing – GST Return Filing are mandatory returns for all companies who obtain GST Registration. GST Returns are filed on monthly, quarterly & annually basis.
Income Tax Return – Income tax return of a company must be filed irrespective of income, profit or loss. Hence, even dormant companies with no transactions are required to file income tax return each year.
TDS Return Filing – TDS Return is also required to be filed by the pvt ltd companies who have TAN Number and are also required to deduct tax at source as per TDS Rules.
How It's Done
- Purchase of Plan
- Registration of Digital Signature Certificate
- Company Name Reservation with RUN
- Filing of e-Forms with ROC
- Receipt of Incorporation Certificate
Minimum Requirements
- Minimum 2 Shareholders
- Minimum 2 Directors are required
- Minimum 1 Lac Share Capital
- DIN for all the Directors
- Atleast one Director should be an Indian Resident
Package Includes
- 2 Class 2 Digital Signature*
- 2 Director Identification Number
- 1 RUN Name Approval*
- 1 Lakh Authorized Capital
- Incorporation Fee
- Stamp Duty*
- Incorporation Certificate
- Apply for PAN Card
- TAN Registration
- Share Certificates
- Commencement of Business
- GST Registration
- Online GST Certificate
- PF Registration
- ESI Registration
- Online Payment Gateway
- Assistance
*
- Class 2 Digital Signature – with 2 year validity on secure USB token.
- 1 RUN Name Approval – Upto 4 name options can be given in 1 RUN name approval request. If rejected, fee will applicable again of Rs.2000.
- Stamp Duty – Included only for Dadra And Nagar Haveli, Delhi, Haryana, Himachal Pradesh, Jammu And Kashmir, Jharkhand, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim & Tripura. For all others states & union territories stamp duty will be chargeable extra.
Frequently Asked Questions
Starting a company is easy through Infinity Compliance. All that is required are PAN card of the promoters, address proof and bank statement copies of the promoters along with address proof for the registered office address. A company can be started in about 10 – 15 days. If you have the necessary documents, sign up for one of our packages and have a company registered with guidance from one of our Advisors.
Yes, you need a minimum of two directors for a private limited company. The maximum members can be 200. If you are the sole owner, you can register as a One Person Company.
Limited liability is the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a private limited company, the liability of the shareholders in respect of the company’s liabilities is limited. In other words, the liability of the shareholders of a company is limited only to the value of shares taken up by them.
Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid-up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased after incorporation at any time to issue additional shares to the shareholders.
Well, you can get someone from your family or friend circle as the second direction and give them marginal share, e.g, 0.01%. You also have the option to register a One person company, but it will not be possible to add directors in OPC later.
Any person over the age of 18 years can become a director in a company. Also, there are no conditions on residency or citizenship. Hence, NRIs and Foreign Nationals can easily start and manage a private limited company in India.
A company is a legal entity and a different person established under the Act. A company is treated as a different person which can own property and have creditors or debts. The members (Shareholders/Directors) of a company will have no liability to creditors of a company in case the company is unable to pay the debts.
Yes, every company registered in India must have a registered office where all official communication is sent by the MCA, governmental agencies, financial institutions, etc., The registered office of a company can be in any state of India.
Other Entity Registrations
Difference Type
- Recommended For
- Ease of Investment
- Limited Liability Protection
- Tax Advantages
- Perpetual Existence
- Statutory Compliances
Limited Liability Partnership
- Professional Service Firms
- Possible, but unlikely
- Yes
- Most efficient
- Yes
- Low
Private Limited Company
- Start-Ups & Growing Businesses
- Very Easy to Accommodate
- Yes
- Few Benefits
- Yes
- High
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