Private Limited Company Registration - Procedure
Private Limited Company Registration
There are many forms of company registration in India like sole
proprietorship firms, partnership firms, public limited companies, private
limited companies, One Person companies and limited liability partnership firm.
However, private limited
company registration is one of
the most popular forms of entity registration in India.
Some characteristics of private
limited company in India are as under:
a)
It has minimum 2 members and can
have maximum 200 members
b)
It shall have minimum 2 directors
and shareholders, out of which at least one director must be an Indian Resident
and Citizen.
c)
It has limited liability i.e the
liability of the shareholders are limited to maximum number of shares held by
them
d)
It has separate legal identity from
its members and shareholders; therefore, it can sue and can also be sued by
outside parties.
e)
It restricts the right to transfer
the shares; it means that the shares of the private limited companies are not
freely transferrable.
f)
It prohibits any invitation to the
public to subscribe to any securities of the company.
g)
Every year, at least 4 board
meetings shall be held by the private limited company and one annual general
meeting must also be held.
Procedure
for private limited company registration in
India
First of all, digital
signature of all the directors needs to be prepared.
Secondly, the name of
the company shall be applied for approval by ROC by filling the relevant form
RUN wherein 2-3 proposed names of the company are mentioned and any one name as
per the discretion of the ROC/MCA gets approved.
Once name of the
company is approved, the company needs to draft memorandum and article of
association of the company, director consent letter is signed and director
identification number is applied. Simultaneously, relevant forms are filled for
applying final incorporation of the company. At this stage, the company also
applies for PAN, TAN, ESI, PF, IEC and GST number. Also, proposed name of the
banker is also provided.
Finally, the
certificate of incorporation of company is granted and company gets registered.
Once the company gets
registered, it has to immediately apply for GST registration and open current
account in the bank and all the shareholders need to bring share subscription
money in the bank account in proportion of their shareholding.
At this stage, company
may also apply for other types of registrations like Import Export code,
factory license, shop and establishment license etc. as per the requirement and
nature of business of the company.
Also, within 2 months
of incorporation of the company, the company needs to issue share certificate
to its shareholders.
Further, within 60 days
of incorporation, the company needs to apply for certificate of commencement of
business failing which the company and every director of the company are liable
for penalty upto Rs 50,000 and also per day penalty of Rs 5000 for each day of
continuing default.
Lastly, within 30 days
of incorporation, the company needs to hold its first board meeting and appoint
the first auditors of the company.
In case of subsidiary
company registration in India, besides above procedure, once the
share subscription money is received from foreign shareholders, the company has
to do some compliance with the RBI relating to intimating the RBI about receipt
of such FDI from foreign shareholders.
With above the
procedure of private limited
company registration in India is
completed.
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