Private Limited Company

 Private Limited Company is one of the most common and popular forms of business entities in India. Here is an overview of a Private Limited Company:

Characteristics of a Private Limited Company:

Limited Liability: Shareholders' liability is limited to the extent of their shares in the company. Their personal assets are generally protected in case of company debts or liabilities.

Separate Legal Entity: A Private Limited Company is considered a separate legal entity distinct from its shareholders. It can own assets, enter contracts, and sue/be sued in its own name.

Minimum and Maximum Members: Requires a minimum of two and a maximum of 200 shareholders. The number of shareholders cannot exceed 200, excluding employees and former employees who hold shares.

Restrictions on Share Transfer: Shares of a Private Limited Company are not freely transferable. Share transfers require compliance with company rules and shareholder agreements.

Board of Directors: Must have at least two directors, and one of them must be a resident of India. Directors are responsible for managing the company's affairs.

Financial Reporting: Private Limited Companies are required to maintain proper accounting records and file annual financial statements with the Registrar of Companies.

Raising Capital: Private Limited Companies can raise capital by issuing shares to investors, venture capitalists, or angel investors without going public.

Process of Registering a Private Limited Company:

Name Approval: Choose a unique name for the company and apply for name availability through the Ministry of Corporate Affairs (MCA) portal.

Documentation: Prepare necessary documents such as Memorandum of Association (MOA), Articles of Association (AOA), identity and address proof of directors, shareholders, and other required documents.

Digital Signature Certificates (DSCs): Obtain DSCs for all directors to digitally sign the incorporation documents.

Incorporation Application: File an application for company incorporation (SPICe form) along with the required documents, MOA, AOA, and DSCs through the MCA portal.

Certificate of Incorporation: After successful processing and verification, the Registrar of Companies will issue a Certificate of Incorporation, confirming the creation of the Private Limited Company.

PAN and TAN Application: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the newly incorporated company.

Bank Account and Compliance: Open a bank account in the company's name and ensure compliance with statutory requirements such as GST registration, obtaining necessary licenses, etc.

DOCUMENTATION 

The documentation required for registering a Private Limited Company in India includes various essential documents. Here is a list of the key documents needed:

Documents Required for Private Limited Company Registration:

Director Identification Number (DIN): DIN is required for all directors. Application for DIN can be made by filing Form DIR-3 online.

Digital Signature Certificate (DSC): Obtain DSC for all directors. DSC is used to digitally sign incorporation documents. Each director must have their own DSC.

Memorandum of Association (MOA): MOA contains the objectives for which the company is formed. It defines the company's scope of activities.

Articles of Association (AOA): AOA contains rules and regulations for the company's internal management. It includes details about share capital, meetings, voting rights, etc.

Address Proof: Address proof documents of registered office premises, such as rental agreement, sale deed, or utility bills not older than two months.

Identity Proof: Identity proof of directors and shareholders, such as Aadhaar card, passport, voter ID, or driver's license.

PAN Card: PAN card of directors and shareholders. Each director and shareholder should have their PAN card.

Residential Proof: Residential address proof of directors and shareholders, such as Aadhaar card, passport, voter ID, or driver's license.

Declaration by Directors: Declaration by directors stating that they are not disqualified to become directors under the Companies Act.

Consent to Act as Director: Consent from each director to act as a director of the company.

Board Resolution: Board resolution approving the incorporation of the company, appointment of directors, and authorization for filing incorporation documents.

Specimen Signature: Specimen signature of directors.