PRIVATE LIMITED COMPANY
What is a Private Limited Company?
Private Limited Company registration is one of the most popular legal structures used for businesses in India. A private limited company can have a minimum of two members and unlike LPP, private limited company can have a maximum of fifty members.
Private limited company directors have limited liability to creditors. If in case of default, banks/creditors can only sell company’s assets but do not have to sell personal assets of directors. If you want to start a company in India then your company should be registered under Company Registration and should be your first priority. It is very important to register your company as a registered company which will let you have various advantages.
Most start-ups and companies in India generally prefer private limited companies as it allows outside funding to be raised easily for their companies, it also limits liabilities for its shareholders and allows them to offer employee stock options.
Every companies which are registered in India have to maintain compliance under various regulations. If you fail to maintain compliance, then it may lead to penalty or disqualification of company directors.
Some of the mandatory compliance is as follows:-
1) DIN KYC : The DIN KYC procedure must be completed each year for the directors of the company.
2) Annual Return : Companies should file MCA annual return each year in forms AOC-4 and MGT-7.
3) Commencement of Business : The capital mentioned in the Memorandum of Association should be deposited in bank and business commencement certificate must be obtained from MCA.
4) Income Tax Filing : Companies should file income tax return each year in Form ITR-6.
5) Statutory Auditor appointment : The board of directors should appoint a CA within 30 days of incorporation.