Private Limited Company Registration

To incorporate a private limited company, a minimum of two people are required. A private limited company must have a minimum of two Directors and can have up to a maximum of fifteen Directors. A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company.

Tax on Profits

Tax rate is 30% flat. plus, surcharge and education cess extra on company profits

Tax on Dividends

Taxed in the hands of companies @16.225%. No tax in the hands of shareholder.

Profit Distribution

Profits can only be drawn out of company only in the form of dividends.

Ownership

Profits can only be drawn out of company only in the form of dividends.

The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in a Indian Private Limited Company.

You can start a Private Limited Company with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.1 lakh [Authorized Capital Fee] during the registration of the Company. There is no requirement to show proof of capital invested during the registration process.

Private Investments

Generally, when any business idea clicks, it needs funds to grow, private company is the best option for this.

Creates Trust

Trust is important for any business to grow. Forms other than company are not generally trusted.

Limited Liability

Member’s personal assets are safe. Liability of company is limited to the assets of the same.

Shares Transferability

By following compliances in private limited company a shareholder can easily transfers its shares.

Owning Property

A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.

Limited Liability

Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company's debts is limited.

Capacity to sue and be sued

To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person's name, a company being an independent legal entity can sue and also be sued in its own name.

Dual Relationship

In the company form of organization it is possible for a company to make a valid and effective contract with any of tis members. Thus, a person can at the same time be a shareholder, creditor, director and also an employee of the company.

High Borrowing Capacity

In compare to other forms, more preference is given to private limited company in giving loan.

Separate Legal Identity

A private limited company is a legal entity and a juristic person established under the Act.

Uninterrupted Existence

A company has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved.

An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.

There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.

Private Limited Company Registration

Rajput Jain & Associates can incorporate a Private Limited Company in 14 to 20 days, subject to ROC processing time. Check if the proposed promoters / directors have Director Identification No (DIN) or not.

Obtaining DSC & DIN

Digital Signature Certificate (DSC) and Director Identification Number (DIN) is required for the proposed Directors of the Private Limited Company. DIN and DSC can be obtained for the proposed Directors within 5 to 7 days.

Name Approval

A minimum of one and a maximum of six proposed names must be submitted (under INC-1) to the MCA. Subject to availability, naming guidelines and MCA processing time, Name Approval can be obtained in 5 to 7 working days.

Company Registration

Registration documents can be submitted (Form INC-7, INC-22 DIR-12)to the MCA along with an application for registration. MCA will usually approve the application (under E Forms)for incorporation in 5 to 7 days, subject to their processing time.

Process Involved in Getting Commencement of Business (W.E.F 1st April 2014)

• PAN and TAN Number are applied after getting the Incorporation Certificate.
• All Private Limited Companies should get certificate of Commencement of business before starting any Business in the Company.
• Form INC-21 is filled with Registrar of Companies along with Bank Statement (showing higher of Rs 1,00,000/- or Companies Paid up Capital) along with Relevant Stamp Duty.
• Once form is approved, Certificate of Commencement of Business is granted with approval to start business.

No, you will not have to be present at our office or appear at any office for the registration of a Private Limited Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.

Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.

Rajput Jain & Associates can incorporate a Private Limited Company for in 14-20 days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.

To incorporate a Company quickly, make sure the proposed name of the Private Limited Company is very unique. Names that are similar to an existing private limited company / limited liability partnership / trademark can be rejected and additional time will be required for resubmission of names.

Normally, it takes 14 - 20 days in company formation, but it totally depends on Ministry of Corporate Affairs (MCA) approvals.

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Company.

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

Authorized capital of a Company is the amount of shares a company can issue to it shareholders. Companies have to pay the Government an authorized capital fee to issue shares in a Company. Companies have to pay authorized capital fee for a minimum of Rs.1 lakh.

A private limited company must hold a Board Meeting atleast once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be conducted by the Private Limited Company, atleast once every year.

Yes, a NRI or Foreign National can be a Director in a Private Limited Company after obtaining Director Identification Number. However, atleast one Director on the Board of Directors must be a Resident India.

Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.

100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route. Under the Automatic Route, only a post-investment filing is necessary with the RBI indicating the nature of investment made. There are a few industries that require prior approval from the RBI, in such cases, approval must first be obtained from RBI prior to investment.

Following compliance involved in newly incorporated private limited company:

• Apply for PAN and TAN.
• Apply for Sales Tax / Service Tax Registration based on the nature of Business.
• Filing ADT-1 for Appointment of Auditor within 1 Month of Incorporation of Company.
• Filing Income Tax Return of Company on or Before 30th September - Next Year.
• Get your account books Audited Every Year.
• Filing of form 20B, Form 23AC, Form 23ACA( New Change forms ) every Year.