Private Limited Company​

What is a Private Limited Company in India?

A Private Limited Company (Pvt Ltd) is one of the most popular types of business entities in India, favored by entrepreneurs and startups for its numerous advantages. If you’re considering starting a business in India, understanding the structure and benefits of a Private Limited Company is crucial.

Key Features of a Private Limited Company

• Limited Liability: One of the primary advantages of a Private Limited Company is limited liability protection. Shareholders are only liable for the company’s debts to the extent of their shares, protecting personal assets from business liabilities.

• Separate Legal Entity: A Private Limited Company is a separate legal entity distinct from its owners. It can own property, sue, and be sued in its own name, providing a higher level of credibility and legal protection.

• Perpetual Succession The company’s existence is not affected by changes in ownership or the death of shareholders. It continues to exist until it is legally dissolved.

• Number of Members: A Private Limited Company can have a minimum of 2 and a maximum of 200 members. This makes it suitable for small to medium-sized businesses.

• Director Requirements: A Private Limited Company must have a minimum of 2 directors and can have a maximum of 15 directors. At least one of the directors must be a resident of India.

• Minimum Capital: To start a private limited company, you no longer need to maintain a minimum paid-up capital of Rs. 1 lakh. The Companies Amendment Act, 2015 has removed the minimum capital requirement, allowing you to start a private limited company with no specific capital investment.

• Share Transferability: Shares of a Private Limited Company are not freely transferable, which helps maintain control over the ownership and prevents unwanted external influence.

Advantages of a Private Limited Company

• Attracting Investors: Private Limited Companies are more attractive to investors due to their structured and regulated nature. They can raise capital through the sale of shares.

• Tax Benefits: Private Limited Companies in India enjoy various tax benefits and exemptions, which can lead to significant savings.

• Brand Credibility: Registering as a Private Limited Company enhances your business’s credibility with customers, suppliers, and financial institutions.

• Ease of Expansion: The structured framework of a Private Limited Company makes it easier to plan and execute business expansions and scale operations.

• Compliance and Governance: Although it requires adherence to various legal compliances, this can be beneficial as it instills a sense of discipline and transparency in the company’s operations.

Steps to Register a Private Limited Company in India

• Digital Signature Certificate (DSC): Obtain DSCs for the proposed directors, as these are required for digital filings.

• Name Approval: Select a unique name for your company and get it approved by the Ministry of Corporate Affairs (MCA) by filling web form RUN.

• Document Submission: Prepare and submit the Memorandum of Association (MoA) and Articles of Association (AoA) along with other necessary documents.

• Filing with RoC: File the web form INC-32 along with MOA, AOA and KYC documents with the Registrar of Companies (RoC).

• Certificate of Incorporation: Upon approval, receive the Certificate of Incorporation, which confirms the registration of your Private Limited Company.

• Obtain PAN/TAN: PAN & TAN of the company will be issued along with the incorporation certificate.

Required Documents for Private Limited Company Registration in India

• PAN Card of Proposed Directors and Shareholder
• Identity proof (Either Passport, Aadhar card, Driving License or Voter ID) of Proposed Directors and Shareholder
• Colored Passport size photo of Proposed Directors and Shareholder
• Residential Proof (Either Electricity Bill, Telephone Bill or bank passbook) of Proposed Directors and Shareholder
• Proof of registered office (Either Rent/Lease agreement or NOC from owner along with electricity bill) of proposed company

Why Choose E Accountax Manager for Registering a Private Limited Company?

• Expertise and Experience: E Accountax Manager’s team of seasoned professionals ensures a smooth, hassle-free registration process tailored to your business needs.

• Comprehensive Services: From consultation to document submission, E Accountax Manager handles all aspects of company registration, allowing you to focus on growing your business.

• Fast and Efficient: Our streamlined procedures and expert handling mean your company can be up and running quickly.

• High-Value Service: At E Accountax Manager, we believe in charging the right price to offer high-value services. Our commitment is to provide exceptional service without compromising on quality.

• Personalized Support: We provide personalized support tailored to your specific business requirements, guiding you through every step of the process.

• Compliance Assurance: We ensure your company complies with all legal requirements, minimizing future legal risks and ensuring peace of mind.

• Positive Client Feedback: Our numerous positive testimonials and high client retention rates highlight our commitment to excellence and customer satisfaction.

• User-Friendly Online Platform: Our intuitive online platform allows you to easily track your registration progress and communicate effortlessly with our team.

Choosing E-Accountax Manager for your private limited company registration ensures a professional, efficient, and supportive process, helping you start your business on the right foot with high-value service

Post Incorporation Compliances

For a private limited company in India, post-incorporation compliance is crucial to avoid penalties and ensure smooth operations. Here's a concise summary:

• One Time Compliance:

  • First Board Meeting: Within 30 days of incorporation, hold a meeting to appoint statutory auditors and address key agenda items.

  • Appointment of Statutory Auditor: Appoint a qualified individual or firm as the statutory auditor within 30 days of incorporation.

  • Filing for Commencement of Business: File a declaration for commencement of business within 180 days of incorporation, after opening a bank account and depositing subscription monies.

  • Issuance of Share Certificates and Stamp Duty: Deliver share certificates within two months of incorporation and pay stamp duty within 30 days of issuance.

  • Affix Sign Board: Every company is required to paint or affix its name and address of its registered office and keep the same painted or affixed on the outside of every office or place where the company's business is carried on.

• Annual Compliance for Pvt Ltd Company :

  • Annual General Meeting (AGM): Hold an annual general meeting within 6 months of the financial year-end and file ADT-1, AOC-4, MGT-7, and other required forms with the Registrar of Companies within specified timelines.