A private limited company is a type of company that is registered under the Companies Act, 2013 in India. This type of company is a separate legal entity with limited liability and has a minimum of two and a maximum of 200 members/shareholders. The shareholders of a private limited company have limited liability, which means that their personal assets are not at risk in case of any losses incurred by the company.
The shareholders of a private limited company have limited liability, which means that their personal assets are not at risk in case of any losses incurred by the company.
A private limited company is a separate legal entity, which means that it can own property, enter into contracts, and sue or be sued in its own name.
A private limited company has perpetual existence, which means that it continues to exist even if the shareholders or directors change.
A private limited company must have a minimum of two and a maximum of 200 members/shareholders.
The shares of a private limited company cannot be freely transferred or traded, and any transfer of shares requires the approval of the other shareholders.
A private limited company is required to have a board of directors, which manages the affairs of the company and makes decisions on behalf of the shareholders.
A private limited company is required to get its accounts audited by a qualified auditor every year.
Starting a private limited company in India requires registration with the Ministry of Corporate Affairs (MCA), submission of required documents and fees, and obtaining the necessary approvals and certifications.
The first step is to obtain a DSC for the proposed directors of the company. A DSC is a digital signature that is used to sign documents electronically.
The next step is to obtain a DIN for the proposed directors of the company. A DIN is a unique identification number that is assigned to every director of a company.
Once you have obtained the DSC and DIN, you need to apply for the reservation of a company name through the RUN (Reserve Unique Name) facility on the MCA portal.
After the name has been reserved, you need to file an incorporation application through the SPICe (Simplified Proforma for Incorporating Company Electronically) form on the MCA portal. You will also need to attach the required documents, such as the Memorandum of Association (MOA) and Articles of Association (AOA), and pay the required fees.
After the incorporation application is approved, you need to apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company.
Once you have obtained the PAN and TAN, you can open a bank account for the company and start conducting business.
It is important to note that the process of incorporating a private limited company in India can take up to 15 days or more, depending on the time taken for approval of the application and other factors. It is recommended to seek the assistance of a professional such as a chartered accountant or a company secretary to ensure that the incorporation process is smooth and hassle-free.