A Private Limited Company is a business entity held by small group of people. It is registered for pre-defined objects and owned by a group of members called shareholders. Startups and businesses with higher growth aspiration popularly choose Private Company as suitable business structure.
As the name suggests, a private limited company is a privately-held business entity. It is held by private stakeholders. The liability arrangement in a private limited company is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them. The shareholders cannot be held liable beyond the value of the shares.
PREREQUISITES FOR INCORPORATION
£ Minimum 2 & maximum 200 members are required as per Companies Act 2013,
£ Liability of each member or shareholder is limited to the extent of their contribution in company as capital or any other form,
£ Minimum 2 Directors & 2 Shareholders,
£ Each Director should have DIN (Director Identification Number),
£ Minimum paid-up capital of ₹ 1 Lakh is required for incorporation.
LEGAL & ANNUAL COMPLIANCES
£ Company Name board outside office where business is being carried on, in legible letters,
£ Every Private Limited Company shall get its name, address of registered office, CIN, telephone and email printed on all business letters, billheads, letter papers,
£ Applying for PAN & TAN Number, and Director Identification Number,
£ Opening Bank Account in name of business,
£ MSME or Udyam/Udyog Aadhar Registration, not mandatory, but beneficial to be registered under the same,
£ Auditing of accounts of company & filing tax return for every financial year,
£ Obtaining other registrations such as EPF, ESI, Professional Tax etc.,
£ GST Registration if turnover exceeds ₹40/₹20 Lakhs,
£ GST Return if registered under GST,
£ Appointment of First Auditor of the Company.