Private Limited Registration
The Private Limited Company registration in India is governed by the Ministry of Corporate Affairs (M.C.A.).
Section 2 (68) of the Companies Act, 2013 defines a private company as:
The company with a paid-up share capital meeting the prescribed minimum requirement and whose articles,
- restrict the transferability of its shares,
- except in the case of One Person Company which imposes a membership limit of two hundred individuals
- Prohibits any invitation to the public to subscribe to any company securities.
Getting a private limited company registration in Gurgaon is highly recommended as this type of company offers limited liability to the shareholders with specific restrictions placed on the ownership.
The most popular form of business entity is a Private Limited Company in India. The Ministry of Corporate Affairs (MCA) regulates all companies registered in India under the Companies Act of 2013.
A minimum of two directors and two shareholders is necessary to establish a Private Limited Company in India. Both directors and shareholders must have a valid PAN (Permanent Account Number) card and bank account No. of Directors in a private limited company can be increased to a maximum of 15, and no. of shareholders can be increased to a maximum of 200.
There are certain mandatory compliances attached to a private limited company registration in India after incorporation. Every company needs to hold. Its Annual General Meeting every year and needs to file its financial statements to the Ministry of Corporate Affairs within 30 Days of the Annual General Meeting and also need to file the annual return of the company within 60 Days of Holding the Annual General Meeting. Besides this, there are other compliances also attached to private limited companies which need to be complied with for the smooth functioning of the company.
Limited Liability - means that in case of any failure on the company's part, members are not liable to contribute more than the amount they have invested in the company. It is the most significant advantage of a private limited company.
- Tax Efficient- Private limited company registration in Delhi are considered tax-efficient entities since they can avail themselves of corporation tax relief on their profits. This advantage can result in substantial business savings and increase profitability. Also, Private limited companies can distribute dividends to their shareholders, which are taxed at a lower rate.
- Separate Legal Entity -A private limited company is a separate legal entity from its shareholders and directors, which means the company can make contracts with other companies and individuals and is solely liable for its debts.
- Easier To Raise Capital- To raise capital for business is one of the most challenging tasks, and since private limited registration in Delhi is becoming increasingly popular, more credibility attracts investors into the business. This can be done by issuing new shares or bonds.
Documents required for registration of Private Limited Company
- DSC of all the directors
- DIN no. of Directors
- P.A.N card of directors and Shareholders
- ID proof of directors and shareholders
- Latest Bank statement of directors and shareholders as address proof
- Electricity Bill of registered office
- N.O.C from the owner in case registered office is rented
- Passport Size photo of the directors and shareholders