Private Limited Company
Private Limited Company is a type of privately held business entity in which the liabilities of its directors/shareholders are limited to the amount of shares they hold in the company. Private Limited Companies are governed by the Companies Act, 2013 and require a minimum of 2 Directors and 2 Shareholders with one of the Directors being an Indian Resident and Indian Citizen.
Benefits of Private Limited Company Registration in India
- Limited Liability: The liability of the directors/shareholders of a Pvt Ltd company is limited to the amount of shares they hold in the company. This means that the personal assets of the directors/shareholders are not at risk in case the company run into financial trouble
- Legal Entity: This means that the company is responsible for management of its assets and liabilities. Directors /shareholders will not be responsible for the losses of the company.
- Perpetual Succession: A Pvt Ltd company has perpetual succession, which means that it continues to exist even if its members change or die.
- Fund Raising: A Pvt Ltd company can raise funds through equity or debt financing, which can help it grow and expand.
- Tax Benefits: Pvt Ltd companies enjoy several tax benefits, such as lower corporate tax rates and exemptions on certain types of income.
Document Required
- For registering your company as Private Limited Company, follow our KIS Groups experts steps:
- Photographs of all Directors: Passport-sized photographs of all the directors of the company.
- Obtain a Digital Signature Certificate (DSC)
- Obtain Director Identification Number (DIN)
- Identity Proof: PAN Card or Aadhaar card or passport or driving license of all directors.
- Address Proof: Electricity bill or telephone bill or bank statement or any other utility bill for the address proof of the registered office.
- No Objection Certificate (NOC): NOC from the owner of the property where the registered office is situated.
- Memorandum of Association (MOA): MOA is a legal document that outlines the company’s objectives, scope, and limitations.
- Articles of Association (AOA): AOA is a legal document that outlines the company’s internal rules and regulations.
Private Limited Company Compliances
- Once a company is registered in India, various compliances must be maintained from time to time to avoid penalties and prosecution.
- Audit: Get accounts audited by a qualified Chartered Accountant every year.
- Annual Return: File annual returns with the Registrar of Companies (ROC) within 60 days from the date of its AGM.
- Financial Statement: File financial statements with the ROC within 30 days from the date of its AGM.
- ITR Filing: File income tax returns on or before the due date, which is usually July 31st of every year.
- Compliance Certificate: Obtain a compliance certificate from a practicing Company Secretary every year, which certifies that the company has complied with all the applicable laws and regulations.
- Director DIN KYC: All persons who hold a Director Identification Number (DIN) – which is allocated during the incorporation process, must complete DIN KYC each year to validate the phone and email address on record with the Ministry of Corporate Affairs.