Its high trend of choosing private limited company as their form of business registration . its all being made Of Compliance structure by the companies act. it gives most promising security to creditors, lenders, banks, share holders and investors list may go up to much extent. only because of its structure as already mentioned earler of the same. how Shall It be possible ? example: a creditor, banker may lend to a private limited comapny and Creates A charge Against Company For His lending upon the Credit Given To The Company Duly Passed Resolution By The Directors With The Consent Of The ShareHolders The extent necessary passing the same . many of its positive respects of rules and regulations are making more attractive being their(Start Ups or New Business venturer Or Promoters ) form of business registration. being only private limited is allowed to carry some of businesses for this reason also it became mandatory to have choosen to register as a private limited company. example of such: business process outsourcing (bpo process) companies proposed to apply for department of telecommunications license (dot license) the concern department has made it mandatory to have an incorporation certificate duly received upon application filed for the same.
Major Advantage Of Chosing Registration Of private Limited Company is to held investment by venture capitalist and investors those want to become shareholders based on the prospective growth shown by the promoters of the company in their view and projections.
Section 2(85) ‘‘small company’’ means a company, other than a public company,— (i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or (ii) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees: Provided that nothing in this clause shall apply to— (A) a holding company or a subsidiary company; (B) a company registered under section 8; or (C) a company or body corporate governed by any special Act; Section 2(40) “financial statement” in relation to a company, includes— (i) a balance sheet as at the end of the financial year; (ii) a profit and loss account, or in the case of a company carrying on any activity not for profit, an income and expenditure account for the financial year; (iii) cash flow statement for the financial year; (iv) a statement of changes in equity, if applicable; and (v) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv): Provided that the financial statement, with respect to One Person Company, small company and dormant company, may not include the cash flow statement;
(69) “promoter” means a person— (a) who has been named as such in a prospectus (it is mandatory for issuing shares to public for subscription and incase if public limited company only) or is identified by the company in the annual return referred to in section 92; or (b) who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise; or (c) in accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act:
(55) “member”, in relation to a company, means— (i) the subscriber to the memorandum of the company who shall be deemed to have agreed to become member of the company, and on its registration, shall be entered as member in its register of members; (ii) every other person who agrees in writing to become a member of the company and whose name is entered in the register of members of the company; (iii) every person holding shares of the company and whose name is entered as a beneficial owner in the records of a depository;
Section 2(68) “private company” means a company having a minimum paid-up share capital of one lakh rupees(which is amended and it may have any amount of capital as prescribed in small companies definition) or such higher paid-up share capital as may be prescribed, and which by its articles,— (i) restricts the right to transfer its shares; (ii) except in case of One Person Company, limits the number of its members to two hundred: Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member: Provided further that— (A) persons who are in the employment of the company; and (B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and (iii) prohibits any invitation to the public to subscribe for any securities of the company;
As Section(78) “remuneration” means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961;
1. Limited liability: Limited Liability Stands For Up To The amount you have subscribed or invested or shares purchased in the company liability is limited example: you have invested 10000 Rs in the company and other share holder also invested rs 5000 the liability of both the persons is only to the extent of 10000 and 5000 only. need not to bring any personal assets incase of losses from the company
Perpuitual Existence: It Mean Present Directors Of the company may be continued and new directors may appoint in replacing the existing directors and existing share holders of the company may transfer to new shareholers interested in the company but company never dies its existense is continuous . But perpuituality is lost when the company is wounded up by the share holders or creditors or incase if the company is malafied and not to carry its intended objectives then the court may intervene and issue wound up orders
Separate Legal Entity: A Company is a person in the eyes of the law. like a person it can have its own assets , it incur liability, it can lend and it can invest in other companies or businesses upon resolution passed by the board and shareholders where it necessary. it mean it can take loan from the bank though the directors and shareholders pass resolution and sign on the loan agreement and on necessary document but in reality company had the loan not in the name of directors or share holders
Own Property: A private limited company can have property on his name like an individual person hold car, building and other fictious and non fictious assets and it can sell, buy and lend and took loan on the same though the directors may sign on the documents where necessary in the name of the company.
Borrowing: It can take loan like an individual how he took for his personal need. to carry out its objectives company can seek loan from the banks and other financial instituitions for its effective carrying of operations
A director is nothing but like an employee of the company who functions for the growth of the company and takes decision for the well being of the company. He can take salary in case if he appointed as an employee of the company i.e executive director. Note: many of the private employees are in a confusion that he is working in a company but can he form a new private limited and become a director of the company. yes if he choose want to become a non executive employee he can appointed as same and continue his employement. being a non executive director need not to have attend the office of the private limited company regularly and he can advise the company in the matters of importance and growth for the same he can have remuneration fixed by the board
Board of directors mean directors appointed on the board of the company who takes care regular business of the company and appoint non executive directors and independent directors and other directors of personal capacity as its suit to the business of the company and they have regular salary
A shareholder is nothing but a subscriber to the shares of the company he have the power of voting up to the extent of shares he held in passing necessary resolution when it matters important to the company.
1. digital signature
2. director identification number
3. Choosing The Name Of The Private Limited Company Plays An Important Role By The Promoters
Many Of Promoters Wish To Set up Private Limited Company is of opine that they get approval of company name with single word its all happens after name search facility used by the promoters in mca.gov.in and after observation of names approved earlier by the registrars in different states. The Word Choosing for approval of name of the private limited company must have the word indicating object or activity of the company.One Must Note That name approval with single word will be approved only if it also reflects the activity of the company they carry with the proposed company . Further Name of the company must be in Full form not like Abc Software Private limited. we must apply for name approval of private limited company in abbreviated form only.
Name Appoval in Short Form i.e abc software private limited may be given after carrying business for some period whose name is earlier approved in abbreviated/Full Form and are carried business with the earlier approved name of the company
if the name is not approved then what you should you do ?
being only two chances are allowed For approval of name of the private limited company it is advised to choose unique name for resubmission of the e form prescribed for approval of the name of the company
4. Draft Moa
5. Draft Aoa
6. Submite Necessary Declarations And Other Forms In prescribed E Form
7. Apply For Approval Private Limited incorporation certificate With Drafted Moa, Aoa, And other forms as required
8. Get Approval of incorporation Certificate
9. apply company pan
10.apply company pan
current account with any bank Can be opened after receving private limited company incorporation certificate
now avail share certificates from the company
hold share certificates as long you would like to continue as a share holder
would you like to transfer the shares to some one then duly signed share certificate need to be delivered to the transferee upon receiving the value of the shares agreed with you
Every company must have an appointed chartered accountant as its auditor and the same to be informed to the registrar by board upon the approval of share holders of the company. After Submission Of Income Tax Return Of The Private Limited Company Audit Report will be placed before the board of the company for signing and submission of annual report to the MCA
Every Company Must have an company secretary appointed for due filling of annual return of the company prepared by the auditor of the company
professional fee + official fees are given below:
1. din numbers govt fee 500*2 = 1000
2. digital signature 1000*2= 2000
3. company name filing 1000*1= 1000
4. moa and aoa (1 lakh capital fee)= 4800 (This Fee Depends On Capital Choosen)
5. notary and other charges - 1000
6. company pan and tan - 500
7 professional fee - 4500
kerala and punjab state Applicants are additionally need to pay stamp duty charges rs 10,000
a private limited company or public limited company or an llp company proposed to register under the act as a small company need not to have minimum amount of capital i.e rs 1,00,000. it mean with any amount of capital you can register a company it may be a private limited or public limited or opc company. further mean you can register company with even 5000 or 10000 or if any but maximum paid up capital should not exceed to rs 50,00,000
registration of private limited company with 10,000 capital - 12600 rs(15 working days).
registration of private limited company with 50,000 capital - 13,500 rs(15 working days).
registration of private limited company with 1,00,000 capital - 14,400 rs(15 working days).
registration of private limited company with 2,00,000 capital - 16,200 rs(15 working days).
registration of private limited company with 3,00,000 capital - 18,000 rs(15 working days).
registration of private limited company with 4,00,000 capital - 19,500 rs(15 working days).
registration of private limited company with 5,00,000 capital - 20,500 rs(15 working days).
registration of private limited company with 10,00,000 capital - 24,500 rs(15 working days).
registration of private limited company with 20,00,000 capital - 42,500 rs(15 working days).
note: if more than 2 persons rs 2500 extra for each additional person either share holder or director
note: incase nri rs 5500 extra for each person
note:company can be registered with any amount of capital to know more information and charges please call 9346758595 or 9246368595
mail us doucments : email@example.com
or visit personally to our branches listed in our website
mail us below documents and information..(minimum 2 persons required to register pvt ltd company)
note:clear and neat scan copies need to be mailed to avoid delay in process of incorporation
1.photo (who are visiting our office requested to visit with 4 photos of each)
3.adhar car or voter id or passport or driving license (only any one can be given)
4.bank statement/telephone bill/electricity bill (this document address must match with above point 3)
5. office address electricity bill (where you want to register your company)
only information below is required:
1.email id of 2 persons
2.mobile number of 2 persons ( note: working mobile numbers and email ids only need to give )
3.place of birth of 2 persons
4.education qualification of 2 persons
company information required
1. activity or business objective of the company :
2. company names(six names can be given for applying company name approval)
3. company address(full address with pincode is required along with electricity bill ) .
give the company name in below format :::
example: if to apply as private limited ::: anand software private limited
example: if to apply as public limited ::: anand software limited
example: if to apply as opc company::: anand software private limited(opc).
company name approval(provide 6 unique names for fast approval.. incase name is rejected again rs 2000 need to pay to reapply with fresh names)
after completion of step 1 procedure you get
1 director identification number ( for 2 persons)- 4 to 5 days
2. digital signature ( for 2 persons) - 4to 5 days
3. company name approval letter (you receive to email) time - 4 to 5 days
note: some times may take more time also. hence we request to proceed in advance than expected to aviod last minuite issues.
step 2:of private limited company registration procedure (incorporation certificate :
this procedure may complete within 15 days from the day of submission of final documents):
download the below application and provide us the documents filled in with details those whose company name is approved.
(applicants unable to visit office can fill the application form and send us courier after downloading on clicking the suitable form link aforementioned).
dont you have chosen ? a place to registering your company ? no issue you can inform us within 30 days after receiving incorporation certificate of company with an update new office address and now you can give any adress you wish to get the incorporation certificate of company
have you had chosen place of business as registered address to your company then provide us below informed :
provide office address electricity bill + noc from building owner.
all above information and document are must to apply for incorporation
note: provide valid and legible scanned or printed copy to process incorporation . chances of rejection incase if the documents are not in prescribed way
1.memorandum of association
2. artilcles of association.
4. E Forms Name Spice 32,33,34
5.company incorporation certificate.
time : min : 20 working days to maximum of 30 working days (subject to system working conditions, technology updation, descretion of the roc for name approval and other provisions of the companies act ).
5.company pan (pan acknowledgement provided)
6.company tan (tan acknowledgement provided)
note: with pan and tan acknowledgement current account can be open with any bank.
7. printed copies of company incorporation will be provided
no minimum capital required to register a company unlike in earlier act which requires min of 1 lakh capital.
what is capital ?
capital is the amount/investment/contribution to be bring into the company by the share holders/promoters/investors. it should be deposited as per their share subscribed and to be deposited in companies current account and then can be used for company intended purposes.
note: to register company in punjab, kerala, bhopal, chhattisgarh 8000 extra (being additional stamp duty rates compare with rest of the states in india)
after registration of private ltd company or opc company or llp company or public ltd company need to follow the below procedure.
1. rubber stamps (3) for opening a bank account and to carry daily business activitie - rs 600 (must for every company)
2 . new share certificates - rs 500 for each share holder (must for every company)
3. necessary books and stationery @ 2500/- (must for every company i.e pvt ltd or opc or public ltd only) .
regular accounting services (we provide in person : our accountant visit your office and maintain accounts in proper manner including tds, and other compliance)
note: soon the company registration is finished need to appoint an auditor who will certify the financial statement of the appointee company.
12. esi registration click here->esi registration
14. tax deducted at source click here->e-tds(usefull to deduct tax from employees, rent(land lord payment), works contract if any)