Private Limited Company Registration As Per Indian Law

Private limited company registration can be done online and off online mode. Private limited signifies that incorporation is privately owned and has limited liability. The liability of the owner is limited to their shareholdings. It’s the highly used way to start a business in India. The registration of the company as a private limited gives the business legal recognition and protection. It’s the most suitable way to limit liability. This company has universal acceptance and as such is the best way to start the business. The company needs to be incorporated under the company’s act. All the affairs of the private limited company in India are regulated by the ministry of corporate affairs. The word company does not occupy any technical or legal meaning. In the purview of terms of the company act, a company means a company formed and registered under the company act. A corporation or body corporate includes a company incorporated outside India. But it does not include the corporate society registered under the law relating to the corporate society. Section 3 of the company’s act speaks of the formation of the company, and a private company means when two or more people form the company is known as a private company. When the word limited is added to the private company it signifies the privilege of limiting liability for the business debts which is an advantage associated with private limited company registration. The registration of the company is obtained under the provisions of the company act by applying with the registrar of the company section 7(1) the application must be submitted to the registrar in whose jurisdiction the registered office is to be situated. The section requires the filling of the affidavits by each of the subscribers to the memorandum of association and the person’s name as the first director. The Pvt ltd company registration documents required are – These are the important document required for a private limited company in India. On successful incorporation of your private limited company registration, the certificate of incorporation is issued, this brings the company into existence as a legal person. The company is born when the certificate is issued. The subscribers of the memorandum and other persons which are a member of the company from time to time will consist of the incorporated body. The certificate of incorporation is inconclusive proof that all the requirement of the act is complained with by the company. Private limited companies are well known to everybody, these companies require a minimum of two directors and two shareholders, among two directors one must be an Indian citizen. The directors can be a shareholder and the registered office of the company be in India. Documents required as proof of identification are – The private limited company registration process involves the following steps – After the private limited company registration name availability and digital signature comes the turn of the Incorporation application. Private limited company registration can be done online and off online mode. Private limited signifies that incorporation is privately owned and has limited liability. The liability of the owner is limited to their shareholdings. It’s the highly used way to start a business in India. The registration of the company as a private limited company in India gives the business legal recognition and protection. It’s the most suitable way to limit liability. This company has universal acceptance and as such is the best way to start the business. The company needs to be incorporated under the companies act. All the affairs of the private limited company in India are regulated by the ministry of corporate affairs. You can register your company as a limited company. The cost of establishing the private limited varies from Rs 6000 to 30,000. The registration process fee differs according to the number of directors, members, and the share capital and professional fees which further depend upon the complexity of the task which is required to be performed. On the successful incorporation of the company, various compliances are required to be maintained from time to time so that penalties and prosecution can be avoided. The compliances that the company is required to perform are mentioned below. The companies registered in India must appoint a chartered accountant who is practicing and holding a license in India within 30 days of the incorporation of the company. The directors on the incorporation of the company are allocated with the directors’ identification number. Are required to perform the director identification number KYC annually to validate the email address and phone number with the Ministry of Corporate Affairs, private limited company registration also requires this. The companies registered in the country must file a statement of finance with the ministry of corporate affairs in each financial year. For Instance, if the company is formed between January to march the company can file the annual return as part of the next financial statement with the ministry of corporate affairs. The annual return consists of Form MGT-7 and AOC 4 both of which must be signed by the directors through digital signatures. When private limited company registration is successful it must be within 180 days of incorporation to open the current bank account. The shareholders are required to deposit the subscription amount which is mentioned in the Memorandum of the association of the company. For instance, if the company is incorporated with one lakh Rs as a paid-up capital then shareholders must deposit the one lakh in the company’s account with a bank. The bank statement must be filed with the ministry of corporate affairs to obtain the certificate of commencement of business certificate. The companies must file income tax returns with Form ITR 6 in each financial year. The filing of the income tax must be done before the due date irrespective of the incorporation date of the company. The return of the income tax must be digitally signed by one of the directors. Some of the pros and cons of private limited companies are mentioned below, do have a look at them before starting the company – Private Limited company registration in India is not a very complex process, you can easily get it done through various online platforms. The procedure is also quite clear to understand and simple if you are aware of some basic concepts of the company laws in India. The information on the incorporation of a company is also available on the official website of the ministry of corporate affairs. The private limited can be used by people who want to engage either in small business or in huge corporate business. The registration of the company is a mandatory requirement you must follow the law and regulations framed in this regard by the company law in India. The company registered in India must have its registered office within India. Provisions For Private Limited Company Registration in India
Limited liability companies can be limited by the shares or by guarantee.
Online Company Registration in India Process thereof -
Step 1. Application is needed to be submitted to the ministry of corporate affairs to reverse the name of the company.
Step 2. Digital signatures of the directors –
Step 3. Submission of incorporation application
Illustration: Private limited company registration fees in India-
Compliances of a Private Limited Company –
Pros & Cons of the private limited company registration -
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Concluding Remark :