Overview

A Private Limited Company is a type of business entity that is privately held by its shareholders. It is registered under the Companies Act, 2013 and has a separate legal identity from its owners. The liability of the shareholders in a private limited company is limited to the amount of capital they have invested, and their personal assets are protected from the company's liabilities. A private limited company can have a minimum of two and a maximum of 200 shareholders.

Benefits

In India, there are several benefits of registering a business as a private limited company, including:

• Limited Liability: The personal assets of the shareholders are protected from the company's liabilities, as the liability of the shareholders is limited to the amount of capital they have invested in the company.
• Separate Legal Identity: A private limited company has a separate legal identity from its shareholders. It can own assets, incur liabilities, and enter into contracts in its own name.
• Perpetual Existence: A private limited company has a perpetual existence, which means that it continues to exist even if the shareholders change or if one of the shareholders dies.
• Easy Transferability of Shares: The shares of a private limited company can be easily transferred or sold, subject to the company's Articles of Association.
• Access to Funding: A private limited company can raise funds from investors, banks, and financial institutions, as it is viewed as a more credible and stable business structure.
• Tax Benefits: Private limited companies are eligible for various tax benefits and incentives offered by the government, such as deductions for research and development expenses, and exemptions for certain types of income.
• Brand Value: A private limited company is viewed as a more credible and professional business structure, which can enhance its brand value and reputation in the market.
• Better Management: A private limited company has a board of directors, which ensures better management of the company's affairs and operations.

Required Documents

The documents related to the proposed directors of the company and the company itself are as mentioned below:

• : PAN card and Aadhar card of the proposed directors.
• : Address proof of the proposed directors like Aadhar cards, utility bills, Voter-ID cards, ration cards, driver's licenses, passports.
• : Identity proof of directors like driver's license, voter ID, and Aadhar card.
• : Contact details of the proposed directors along with their Email IDs.
• : Passport-sized photographs of the proposed directors.
• : Proof of ownership of the office space, if any
• : If the office space is on rented premises, then the lease deed.
• : If the office space is on rented premises, then a No Objection Certificate from the landlord is needed.
• : Address proof of the office space, like utility bills.
• : Email ID of the company.
• : Draft Articles of Association or AOA and Draft Memorandum of Association or MOA of the company.

Registration Process

Here are the steps to register a private limited company in India:

• Obtain a Digital Signature Certificate (DSC): The first step is to obtain a DSC for the proposed director(s) of the company. A DSC is a digital signature used to sign electronic documents.
• Obtain a Director Identification Number (DIN): Next, the proposed director(s) must obtain a DIN from the Ministry of Corporate Affairs (MCA).
• Name Approval: Choose a unique name for your company and file an application for name availability with the Registrar of Companies (ROC).
• Draft the Memorandum of Association (MOA) and Articles of Association (AOA): These documents define the constitution and regulations of the company. It is advisable to take professional help in drafting these documents.
• Filing the incorporation documents: The next step is to file the incorporation documents, including the MOA, AOA, and the application for incorporation, with the ROC.
• Payment of Registration Fees: Pay the requisite registration fees to the ROC.
• Obtain Certificate of Incorporation: Once the ROC is satisfied with the application, it will issue a Certificate of Incorporation, which means that the company is now a legal entity.
• Apply for PAN and TAN: After obtaining the Certificate of Incorporation, the company must apply for a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN).
• Open a Bank Account: The final step is to open a bank account in the name of the company and deposit the minimum share capital.

Annual Compliances

Annual compliances are important for private limited companies to ensure that they are in compliance with the regulations of the Companies Act, 2013 and to avoid any legal and financial penalties. Here are some of the annual compliances that a private limited company must adhere to in India:

• Annual General Meeting (AGM): Every private limited company must hold an AGM within 6 months of the end of its financial year. The purpose of the AGM is to approve financial statements, declare dividends, appoint or reappoint directors, and appoint auditors.
• Financial statements: The company must prepare and file its financial statements, including the balance sheet, profit and loss statement, and cash flow statement, within 30 days of the AGM.
• Income Tax Return: The private limited company must file its income tax return with the Income Tax Department every year by September 30th.
• Audit: A private limited company must get its financial statements audited by a qualified chartered accountant every year.
• Board Meetings: Private limited companies must hold at least 4 board meetings per year. The board meetings must be held at intervals of not more than 120 days between two consecutive meetings.
• Statutory Register: Private limited companies are required to maintain statutory registers such as a register of members, register of directors, register of contracts, register of charges, etc.
• Annual Return: Every private limited company is required to file an annual return with the Registrar of Companies (ROC) within 60 days of the AGM. The annual return contains information about the company’s directors, shareholders, and other important details.

Why approach LAWYASA?

• Expert guidance: Lawyasa provides expert guidance and assistance throughout the registration process, ensuring that all legal requirements are met.
• Online platform: Lawyasa is an online platform, which means that you can access our services from anywhere, anytime.
• Experienced professionals: Lawyasa has a team of experienced professionals who are well-versed in legal requirements and can provide expert advice and guidance.
• Quick turnaround time: Lawyasa strives to provide quick and efficient services, ensuring that your registration is completed in a timely manner.

How can LAWYASA assist?

Lawyasa can assist with the private limited company registration process in India by providing end-to-end services such as:

• Consultation: Lawyasa can provide expert consultation regarding the registration process, requirements, and compliance obligations for private limited companies in India.
• Documentation: Lawyasa can assist in preparing and drafting the necessary documents for private limited company registration, including the Memorandum of Association (MoA) and Articles of Association (AoA).
• Registration: Lawyasa can help in the actual registration process of the private limited company with the Ministry of Corporate Affairs (MCA) and obtaining the necessary registration certificates.
• Compliance: Lawyasa can assist in ensuring that the private limited company complies with all the legal and regulatory requirements such as annual filings, tax compliance, and other statutory compliance obligations.
• Legal Support: Lawyasa can also provide legal support and guidance on various legal issues related to the private limited company, such as intellectual property protection, contract drafting, and employment-related issues.

Frequently Asked Questions