Aside from the sole proprietor ship or partnership company, the private limited company is the most popular business structure in India.
With a private limited company, the liability of company directors is ‘limited’ to their contribution and company’s liability is separate from the personal liability of the business owner. This is not the case for those who run their business as a sole proprietor or partnership firm. Private Limited company shareholders are not responsible for any debts incurred in the business, although banks may ask company directors to provide loan guarantees for commercial loans taken by the company name.
New Private Limited Company registration process.
MCA is the regulatory body for the incorporation of all limited companies in India, and maintains the registry of private Ltd companies.
Before commence a business as a private ltd company, the company itself has to be registered with Registrar of Companies.
Formation of a new company is a comparatively simple process. You can do through a company registration agent.
The most convenient option is to use a company formation agent. They allow you to complete the complete registration process through online, and it can all be completed in a matter of days.
Documents needed to register a Pvt Ltd Company
Register a new Private limited company; the following documents have to be filed with Registrar of Companies
- Memorandum of Association – It’s a basic document and contains the fundamental provisions like names and addresses of the subscribers of the company.
- Articles of Association – It’s an internal regulation and outlines the directors’ powers, and other right of share holders etc.
- Form INC1 – contains details of the director(s), details of shareholders, and registered office etc..
Company registration agents will have prepared these documents.
MCA provides detailed guidance related to Private Limited Company Registration Process.
Private Limited Vs Public Limited Company
Private Limited companies cannot offer shares to the public, but may have issue shares to friend and relatives.
Private limited company must have at least two directors. Following the enactment of the Companies Act 2013, minimum two share holders required.
Unlike private limited companies, public limited companies are allowed to offer their shares to the public in order to raise capital. A Limited company must have at least three directors and seven share holders
Requirements of Private Limited Companies
The following requirements have to fulfill by the Limited Companies:
- The company must be registered at Ministry of Company affairs
- The company’s annual accounts must be filed at Ministry of company.
- An Annual Return has to be filing each year to ensure Registrar of companies records the most up-to-date information about the company.
- Balance sheet and P& L account has to be file with registrar of companies.
- Every Private limited company must complete an annual tax return with Income tax.
Online Company Registration in Coimbatore
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