PRIVATE

LIMITED
Company Registration

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 INTRODUCTION
Private Limited Company, is the best corporate structure to start your
own business. It is the most common vehicle to carry on business for
an entity intending to make a profit & enjoy the benefits of an
incorporated entity, particularly limited liability.

According to section 2 ( 68 ) of companies act 2013, Private company

means a company which is not a public company & which restricts the
right to transfer its shares & which prohibits any invitation to the
public to subscribe the securities of the company. It can be registered
with minimum two members and maximum with two hundred
members.
 CHARACTERISTICS OF PRIVATE LIMITED
MEMBERS To start a company, a minimum number of 2 members are required
& maximum 200 members as per the provisions of Companies Act , 2013

LIMITED LIABILITY - The liability of each member is limited or shareholders is

limited.

DIRECTORS- Minimum 2 directors is required

PERPETUAL SUCCESSION- The company will continue even in the case of death ,
insolvency & bankruptcy of any of its members.
CONT..

NAME It is mandatory for all the private companies to use the word Private
Limited after its name.

MINIMUM SUBSCRIPTION- Private limited company shares can be allotted to

the public without receiving the minimum subscription.
 ADVANTAGES OF PRIVATE LIMITED
Limited Liability
Liability of Members and Directors of the private limited company is limited
to their shares.

Brand Value
Companys brand value will get increased because employees feel secure in
joining the private limited company.

Continuity of Existence
The life of a business is not affected by the status of shareholders and even
after the death of the shareholder, the private limited company continues to
exist.
CONT

The Scope of Expansion

The Scope of expansion is higher because easy to raise capital from a
venture capitalist, angel investor, financial institutions and the
advantage of limited liability. The private limited offer more
transparency in the company.

Capacity to sue & be sued

A company being an independent legal entity can sue & also be sued in
its own name.
 DOCUMENTS REQUIRED FOR REGISTRATION
For Director & Shareholders

Pan Card
Identity Proof ( Voter ID / Aadhar Card / Passport / Driving License )
Passport Photo
Address Proof ( Bank Statement / Mobile bill / Telephone ) Last 2 months

For Registered Office

Rent Agreement ( Notarised )- If it is rented Property

Property ( Director / Relative ) Registry Proof / House tax receipt
Any Utility Bill in the name of Owner
NOC from the owner
 REGISTRATION PROCESS
1. DSC (Digital Signature Certificate)
All Propose directors of the private limited Company should have a digital signature
and digital signature will use to file the registration, ROC compliance forms, and Tax
returns.

2. Director Identification No (DIN)

When a Digital signature is approved, and you will get an approval email from the
Registrar of companies that you are now eligible to be a director of a company. It
takes one working days to approve DIN. Obtain DIN for the proposed Director in
Form DIR -3
3. Company Name Approval
After a Trademark search, we will proceed to file a Name approval application to
ROC . Select Suitable name of Company & make application to the MCA for
availability of name in Form INC -1.

4. MOA & AOA is to filed Electronically according to Spice version.

5. After Name approval , Form Spice INC -32 is to be filed within 60 days of filling
INC-1 for getting the Certificate of Incorporation.

6. All the Documents related to registered office will filed in Spice INC-32
7. PAN & TAN of the company will filed in Spice INC -32
 COMPLIANCES
There are some compliances which are mandatory in every Private Limited
Company

1. Board Meetings
At least 4 board meetings need to held in a year & at least 1 meeting needs to be
held every quarter.
2. Annual General Meeting
For approval of financial statements , declaration of dividends, appointment of
auditors etc. is the primary agenda for this meeting.
3. Maintenance of statutory register & Minutes book
A number of registers are required to be maintained such as register of member ,
directors etc.
CONT

Event Based Compliances :

Appointment of directors
Allotment of shares
Transfer of shares
Resignation of directors
Change in the Bank signatories
Receipt of share application money
Change in the statutory auditors
MANDATORY COMPLIANCES AFTER INCORPORATION
1. Appointment of Auditor
Within 30 days of registration of company , the board of directors of the company
must call a board meeting & appoint an auditor of the company. The tenure of the
auditor so appointed is to be till the conclusion of the first annual general meeting.

2. Disclosure of Directors Interest & Declaration regarding disqualification

The Board of Directors of the company to hold the meeting within 30 days of
registration & the directors of the company will be required to disclose their
concern or interest in other companies or body corporate declare that directors are
not disqualified .
CONT..

3. Registered Office
On & from the 15th day of its incorporation & at all the times thereafter, the
company is required to have a registered office capable of receiving &
acknowledging communication & notices.

4. Issue of share Certificates to Subscribers

Within a period of 2 months from the date of incorporation , every company must
deliver a share certificates to the subscribers of the memorandum.
 ANNUAL FILLING FORMS
MBP-1 Every director of the company in first meeting of the board of directors
in each financial year will disclose his interest in other entities.

DIR 8- Every director of the company in each financial year will file with the
company disclosure his Non- disqualification.

MGT- 7- Every company shall file its annual return within 60 days of holding of
AGM.

AOC-4 The company required to file its balance sheet along with statement of
Profit & Loss account & directors report in this form. Attachments required :
CONT.

Balance sheet , statement of P & L account , Directors Report , Auditors

Report & Notice of AGM.

ADT- 1- Auditor will be appointed for the 5 year & form ADT-1 is to be
filed.
LEGAL COMPLIANCES AS PER INCOME TAX ACT
Every company registered in India are required to file their Income Tax
Return in ITR6 on or before 30th September of the following financial
year to the financial year for which such returns to be filled.

If such company annual turnover of Rs. 1 Crore or more than 1 crore

during the financial year then they compulsorily required to get their
accounts audited under section 44AB of the Income Tax Act.
Such audits are required to be conducted by Chartered Accountant.
Company Statutory auditor as appointed under Companies Act,2013
can also be appointed as Income Tax Auditor under Section 44AB .
REASONS TO OPT PRIVATE LIMITED COMPANY
1. Improve Business Credibility
In Private Limited Company , the information relating to the company, such as
name of the company , date of incorporation, & other information are made
available in a publicly searchable database. This feature make it easy to
authenticate the existence of the business.

2. Exit Plan
Private Limited companies offer the best type of strategy for all promoters.

3. Going International
Private Limited Companies allow FDI through the automatic route.
4. Give Multiple Opportunities
It will allow the promoter to pursue multiple opportunities .

5. Limit the risk to personal assets.

Thank You
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