Registration Process for private limited company in India in Simple Manner which can easily understand by entrepreneurs.
a) Minimum Requirements â€“
Â· Minimum 2 Directors.
Â· Minimum 2 Shareholders. Directors can be same as shareholders.
Â· Minimum 1 Lac Rupees Share Capital i.e means after incorporation of company, you have to deposit 1 lac in your company bank account.
b) Office required for Register Private Limited Company â€“
Ans- yes, just for Communication purpose need official address of the company which be a residential/Commercial/Industrial Premises.
c) Process Involved in LLP ?
Step 1. Application for Director Identification Number (DIN) in form DIR-3 & DSC (Digital Signature Certificate)
d) Time Period to Incorporate a Private Limited Company ?
Ans- a Private Limited Company completed in 14-20 days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.
e) Initial Documents Required ?
Â· Ans- for all Directors Required Documents-
Â· ID Proof and Address Proof for all Directors
Â· PAN Card Mandatory
Â· latest utility bill (electric bill/telephone bill) for the property to be used for registered office (not older than 2 months)
Â· latest tax receipt/ownership deep of the property (not older than 2 months
f) Government Charges and other legal Expenses for Incorporate Private Limited Company ?
Â· DIR 3 For apply DIN number Costing around 1000 Rupees for 2 Directors.
Â· Digital Signature Certificate Costing around 2000 to 2400 Rupees.
Â· Name Approval Application Costing around 1000 Rupees.
Â· MOA, AOA, INC 7, INC 22, DIR 12 Costing around 3700 Rupees.
Â· Stamp Duty according to state wise nearby 1000 to 1500 & more in some states like MP, Gujarat, Punjab and Kerala.
g) Professional Charges which take by Professionals(CA/CS/CMA) in Market ?
Ans- Professional Charges to Incorporate a LLP in India is from 4000 to 6000 Rupees.
h) Can you register it yourself without help of professional ?
Ans-No, because its needed a professional and during the filing of Documents and Forms its authorized by a Chartered Accountant/Company Secretary/Cost Accountant DSC so you can understand Signature value and Risk of CA/CS/CMA.
I) Annual Compliance for Private Limited Company-
Â· Compliances with Ministry of Corporate Affairs: Companies are annually required to file the Form 23AC & ACA (Audited Statement) and Form 20B (Annual Return) with the Registrar of Companies.
Â· Companies are required to get the Balance Sheet & Profit & Loss account audited by the Statutory Auditor of the Company. Only a chartered accountant in practice can be appointed as the statutory auditor
Â· Board of Directors are required to meet, every quarter in a calendar, the meeting can be held anywhere in India
Â· Shareholder meet once in a year, called as Annual General Meeting, to approve the balance sheet and profit & loss account of the Company. This meeting can be held only in the same city or town, where the registered office is situated
Â· The effective rate of Taxation for Corporate entities is 30.90% to be paid on the amount of the profits. Besides this in case Of Dividend Distribution Companies have to pay Dividend Distribution Tax @ 16.227%
Â· Statutory Registers are required to maintain like Register of Members/Directors/Director Shareholding/Contracts/Common seal/Charge/Investments/Deposits.
J) Why Private Limited Company Adopted by Startups ?
Â· Private Investments-Generally, when any business idea clicks, it needs funds to grow, private company is the best option for this to raise the funds from the Investors.
Â· High Borrowing Capacity- In compare to other forms, more preference is given to private limited company in giving loan from Banks.
Â· Separate Legal Identity-A private limited company is a legal entity and a juristic person established under the Act.
Â· Limited Liability- Members personal assets are safe. Liability of company is limited to the assets of the same.
Â· Share Transferability- By following compliances in private limited company a shareholder can easily transfers its shares.
Â· Perpetual Succession: An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Changes within the management does not bring any affect onto the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law.
Â· Separate Property: A Company as a legal entity is capable of owning its funds and other properties. The Company is the real person in whose hands all the property is vested and such company has the sole right to control, manage and dispose off the property so vested in the hands of the company. The property of Company is not the property of its shareholders.
Â· Selling the Business: It is easy to sell business for a company than any other business form. As business Corporation value will be based on the business, not the owner, therefore making it easy to sell the Company.
Â· Capacity to sue As a juristic legal person, a Company can sue in its name and be sued by others.
Â· Better Governed:Companies are governed by The Companies Act, 2013 and have to follow various other regulatory procedures during the course of its governance, moreover they have to comply with the stringent disclosure norms so imposed by the authority, which let to better governed organizations and creation of value for owners.
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