Private Limited Company

A Private Limited Company is registered with 2 or more persons in India. No minimum capital is required to form a private limited company. It is quite easy to register a company under the Ministry of Corporate Affairs with the help of BizGlobal. A private limited company lies somewhere between a partnership and a widely owned public company. It provides you the benefits of limited partnership while extending the liability only to your respective shares. The maximum number of shareholders in a private limited company has been extended to 200 (from 50) as per the new Indian Companies Act & a company can appoint a maximum number of 15 directors.

For Private Limited Company (PLC) registration in India, the following things must be required: • Minimum 2 directors & shareholders are required to be appointed, out of which one must be a resident of India. It should be noted here that both individuals can become shareholders and directors at the same time. • A place of business in India must be provided as a registered office address. • KYC documents such as copy of PAN card & Aadhaar card of both Directors/Shareholders • E-mail id & Mobile number for both Directors/Shareholders

Hiring a personal CA or CS may be costlier for a startup. Considering this difficulty, we offer an alternative to you to get the company registered from us on an online professional service platform.

The registered office of the company should be such that is under key and lock to keep and preserve legal documents. There is no requirement for a commercial place for the registered office of the company. It can be held at the residential address as well.

Yes, there is no restriction. A family member such as wife, brother, father, mother, sister etc. can become a co-founder or another director of the company.

No, there is no educational qualification or experience required. The only requirement is that the person should be capable of agreeing.

An individual who wishes to be appointed as a Director in any Company or Designated Partner in an LLP, he or she must first apply for a Director Identification Number. An application can be filed in form DIR-3 with MCA for allotment of Director Identification Number. It must be noted that an individual can’t have more than 1 DIN. Director Identification Number (DIN) is a unique number allotted by the Ministry of Corporate Affairs to an individual.

Paid-up share capital refers to the actual amount raised by a company, i.e. amount paid by the shareholders on the issuance of shares. Whereas authorised share capital can be defined as the maximum amount of share capital that a company can raise by way of issuance of shares at present or in the future. It is also possible to increase the authorised share capital to raise more paid-up share capital by way of issuance of shares. Anyone can register a private limited company in India by any amount of paid-up share capital not exceeding the amount of authorized share capital. It must be noted that amount of paid-up share capital can be less or equal to the authorized share capital but can’t be more than the amount of authorised share capital in any case.

Yes, it is possible to use a residential address for a Private Limited Company registration to receive official communication from authorities such as MCA, Income Tax, GST department etc.

No, the Company registration process is completely online. So, none of the promoters/directors are required to visit physically at any place. All required documents & information can be sent through e-mail or uploaded on our portal for filing. Self-attested scanned copies of all documents & relevant information are required along with your authorisation to submit an application before the authority on your behalf. All the forms are filed online on the MCA web portal, application & documents are digitally signed & submitted before the authority for approval.

Yes, there is no restriction under the companies act that restrict a person's ability to become a director in a company if he is a salaried employee somewhere else. However, you should check your appointment documents for any restriction that may have been imposed by your employer.

Apart from other statutory compliances like GST, Income Tax, etc., A Private limited company must comply below without any delay. • File Commencement of Business (COB) e-form INC 20A within 180 days of incorporation. • Appointment of a Statutory Auditor (Practicing Chartered accountant) for Auditing Books of accounts and issue audited Annual Financial Statement. • Filling of ROC Annual Forms • Filing of Director e-KYC

Yes, it is always advisable for small businesses to register their business as a private limited company since it adds credibility to their business. Registering a company helps you to build your company's trust in your customer’s mind. A customer always feels safe, confident and comfortable while dealing with a registered entity. It is also easier for the private limited company to get loans from banks and potential investors as compared to a one-person-company, sole proprietorship or a partnership.

There is no requirement of minimum capital prescribed to register a private limited company but it is advisable to have a minimum capital of Rupees ten thousand to one lakh as an authorised share capital during the registration. Requirement of minimum share capital has been eliminated by the Government as part of the ‘ease of doing business’ initiative to simplify the business registration process in India. However, it is required for every member to subscribe to a minimum number of 1 share to contribute the minimum share capital amount as paid-up share capital to run business smoothly at the time of private limited company registration.

An applicant can file the maximum of 2 names with their order of preference under RUN form on MCA portal along with the details of nature of business to be carried out. The applicant should comply with the provisions of the Act or regulations. The registrar may ask to re-submit the application with a different name if the names do not fall under the criteria of uniqueness, relevancy or do not fulfill other requirements.

Any individual above the age of 18 years can be appointed as a director in the company after getting the Digital Signature Certificate (DSC) & Director Identification Number (DIN). Even a foreign national can also become a director in a private limited company. There is no specific criteria prescribed in terms of his/her citizenship or residency. Now-a-days DIN gets allotted at the time of company registration subject to a limit of maximum 3 DIN. If more people require a DIN application, it can be filed separately in form DIR-3 with MCA.

From incorporation to regular annual filing, there are multiple e-forms prescribed under MCA which are required to be digitally signed & submitted to the Ministry of Corporate Affairs. Digital Signatures can be used for filing purposes only such as MCA Filing for Company Incorporation, Annual Filing etc. It can also be used for GST Registration & Returns filings, Income Tax filings etc.MCA has authorised certain authorities to issue Digital Signatures Certificates in the form of a token. DSC can be issued in class-3 digital signature certificate

Yes, it is a standard practice to include multiple business activities in the object clause of Memorandum of Association (MoA) to cover more scope of business. Business activities which are not related to the same field or of the same nature, those business activities are not allowed under the same company unless approved by ROC.

Yes, NRIs or foreigner nationals can become shareholders or directors by way of investment in a private limited company subject to Foreign Direct Investment (FDI) guidelines. But such a person can be considered as a director only when there is one director who is a Resident of India. Additional documents would be required which are: • A Copy of Passport which is attested by the Consulate of Indian Embassy or Foreign Public Notary. • A Copy of Driving License/ Bank Statement or copy of Electricity Bills or any Property Tax Payment Receipt which is attested by Consulate of Indian Embassy or Foreign Public Notary. RBI approval is required for foreign capital contribution. Additional charges will be applicable for RBI approval. Our experts at BIZGLOBAL will advise you on the applicable charges. However a company will be deemed as a foreign company if the foreign contribution is above 50% of total capital contribution.

Yes, Stamp duty charges are imposed by the state in which the registered office of the company is proposed to be located. The charges are on MOA, AOA & application form. Our charges are covered under the plan for all the states except Kerala, Punjab & Madhya Pradesh. Our experts will guide you on additional charges applicable, if any, for Kerala, Punjab & Madhya Pradesh.

For a private limited company, there are multiple compliances to be done in every financial year which are as follows: • To hold one Annual General Meeting (AGM) and at least 4 board meetings (one in each quarter). • Get the company’s accounts and financial statements audited by an independent auditor. • File the audited financial statements along with the audit report & board report in form AOC – 4 and MGT – 7 as part of Annual Compliance within the given time. • Re-appointment of auditor of company • File GST returns, if applicable • File income tax returns for company as well as for directors of company • File TDS returns, if applicable