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Incorporation and Compliances of Private Limited Company

Incorporation of Pvt. Ltd.13/11/2022 Source: Incorporation of Pvt. Ltd.

 

A private limited company is a separate entity that is held privately and has limited liability. It does not freely transfer its shares to the public like other public companies and requires a minimum of 2 directors and 2 shareholders, with one of the directors being an Indian resident.

Incorporation of a private limited company:

The following are the forms that must be completed in order to incorporate a private limited company.

Spice+A Form

(For the purpose of reserving a new company name)
  1. Type of company
  2. Class of company.
  3. Category of company.
  4. Sub category of company.
  5. Main division of Industrial activity of the company.
  6. Object of company incorporation.
  7. Particulars of the proposed name of the company (incorporation)

Spice+B Form

(For incorporation, DIN allotment, and issue of PAN/TAN etc.)
  1. Structure of the company.
  2. Address of the company.
  3. Subscribers and directors' details.
  4. Stamp duty details.
  5. PAN/TAN Information.

Agile Pro Form

(For GST and ESIC registration)
  1. Details about the company's address
  2. Company’s Business Activity details
  3. Director’s Details and Bank account opening

AOA Spice e+

(Articles of association)
  1. Selecting the appropriate table(F/G/H)
  2. Add number of subscribers and enter Subscriber’s details
  3. The professional details should be the same as in Spice+ Part B

MOA Form Spice e+

(Memorandum of Association)
  1. Object Clause (the clauses have to be entered as per your company’s business objective)
  2. Share capital details
  3. Subscriber’s Details and Professional’s Details

 

Note:-

  1. Objects entered in the above form need to match the business activity and object clause described in the MOA for the incorporation of a private limited company.
  2. The proposed company name must be researched to ensure that no other company is already registered with that name.
  3. A private limited company must have a minimum of two directors and subscribers.
  4. The minimum authorised capital requirement is Rs 1,00,000, but there is no mandatory requirement for capital to be subscribed.

 

Compliances of Private Limited Company -

Following are some of the compliances a company would be required to complete after company registration:

Auditor Appointment: All companies registered in India must appoint a practising chartered accountant within 30 days of incorporation.

Director DIN KYC: All persons who hold a Director Identification Number (DIN) need to complete DIN KYC each year with the MCA

Commencement of Business: Within 180 days of incorporation, the company must open a bank Current Account and the shareholders must deposit the subscription amount mentioned in the MOA of the company.

MCA Annual Filings: All companies registered in India must file a copy of the financial statements with the MCA on each financial year. MCA annual return consists of Form MGT-7 and Form AOC-4. Both of these forms must be digitally signed by the directors and a practising professional.

Income Tax Filing: All companies must file an income tax return using Form ITR-6 each financial year.