Private Limited Company is the most popular structure for businesses and startups. Private Limited Company allows outside funding & Foreign Direct Investment easily. Private Limited Companies are required to hold Board Meetings,Register Secured Loans with Ministry of Corporate Affairs,Hold Members Meeting for Important matters,Make complete disclosures about important matters in their Board Report. Due to all these regulatory disclosures and requirments imposed on Private Limited Company by Company Law they tend to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership.
Private Limited Company is the most common incorporated business organisation in India. It limits liability of its members & has a perpetual succession. For starting a Private Limited Company minimum 2 members and directors are required.
Features of Private Limited Company
1. Required Minimum 2 Directors and Shareholders
2. Investment Friendly
3. Body Corporate and Benifit of Limited Liablitity
4. Widly Accepted Business Structure
5. Easy Restructuring
6. Maximum Number of Members can be upto 200
7. Suitable for Startups and Growing Businesses
Documents Required For Private Limited Company Registration
1. PAN of all Directors
2. Voter ID/DL/Aadhar Card/Passport of All Directors
3. Passport Photo of all Directors
4. Latest Bank Passbook/Statement or Electricity/Boradband Bill
5. Latest utility bill (electric bill/telephone bill) and Rent Agreement or latest tax receipt/ownership deep of the property for the property to be used for registered office.
Step By Step Procedure For Private Limited Company Registration in Jaipur
Step 1- Application for Obtaining DSC (Digital Signiture)
Step 2- Preparation and Signing of Incorporation Documents
Step 3- Filing of Incorporation Form to MCA
Step 4- Waiting For Approval from ROC
Step 5- Certificate of Incorporation
Step 1- 1 Day
Step 2 and 3 – 1 Day
Step 4 and 5- Time Taken by MCA
Mandatory Legal Requirements for Private Limited Company after Registration :
After registration following are the mandatory compliances for every company:
- Meeting of Board of Directors: First Meeting of Board of Directors is required to be held within 30 days of Incorporation of Company and thereafter 4 meetings are required to be held in every financial year in such a manner that the gap between 2 Board Meetings should not be more than 120 days.
- Issuing of Share Certificate: The Company is required to issue Share Certificates to the subscribers of memorandum within 60 days of Incorporation of Company.
- Appointment of statuary Auditors: As per the provisions of Companies Act, 2013 every Company is required to get its accounts audited from a Practicing Chartered Accountant in India. The Company has to appoint any Practicing Chartered Accountant for the purpose of auditing of its accounts, In case of newly incorporated Company Auditor may be appointed either by Board of Directors within 30 days of Incorporation of Company or it may be appointed by members in Extra Ordinary General Meeting within 90 days of Incorporation and then ratification or re-appointment is required in every consequent Annual General Meeting of the Company.
- Minutes of proceedings of Meeting of Board of Directors, General Meeting: It is mandatory for every company to cause minutes of the proceedings of every meeting of Board of Directors, General meeting within 30 days of conclusion of meeting concerned.
- Filling of Disclosure of interest by Directors: Director of every company are required to give disclosures about their interest in any other business entity in first Board Meeting in which they participate as a Director and thereafter in First Board Meeting of every financial year in FORM MBP-1 to the Company.
- Approval and Signing of Financial Statements: The financial statement shall be approved by the Board of Directors before they are signed on behalf of the Board at least by chairperson of the Company where he is authourised by the Board or by two Directors out of which one shall be managing director and the chief executive officer, if he is a director in the Company, The Chief Finance officer and the Company Secretary of the Company, wherever they are appointed for submission to the auditor for his report thereon.
- Report by Board of Directors: There shall be attached to statements laid before a company in general meeting, a report by Board of Directors of Every Company which details the state of the company and its compliance with a set of financial, accounting and corporate social responsibility standards.
- Filling of Financial Statements or Financial Results: Every Company is required to file its Financial Statements within 30 days of its Annual General Meeting with Registrar of Company in E-FORM AOC-4 available at mca.gov.in which shall be digitally signed by at least one Director and is required to be certified by A Company Secretary in Practice/Chartered Accountant in Practice/ Cost Accountant in Practice if the Company is not a Small Company.
- Filling of Annual Return: It is mandatory for every company to file its Annual Return with Registrar of Companies within 60 days of Annual General Meeting in E-FORM MGT-7 available at at mca.gov.inwww.mca.gov.in which shall be digitally signed by at least one Director and is required to be certified by A Company Secretary in Practice if the Company is not a Small Company.
- Maintenance of Statuary Registers: Following registers are required to be maintained by every company:
- MGT-1: Register of Members
- MGT-2: Register of Debenture Holders
- MGT-3: Foreign register of members, Debenture Holders other security holders or beneficiary residing outside india
- FORM SH-2: Register of renewed and duplicate share certificate
- FORM SH-3: Register of Sweat Equity Shares
- FORM SH-6: Register of Employee Stock Options.
- FORM SH-10: Register of Shares or Securities bought back
- FORM CH-7: Register of Charges
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