Private Limited Company Registration

Minimum 2 people (natural & artificial both) can register a private limited company.

For natural persons following documents are required:

• PAN
• AADHAR
• EMAIL ID
• MOBILE NUMBER
• ANY ONE OF ELECTRICITY BILL / MOBILE BILL / TELEPHONE BILL / BANK STATEMENT MUST NOT BE OLDER THAN 2 MONTHS*
• PASSPORT SIZE PHOTOGRAPH

For artificial persons following documents are required:

RESOLUTION FROM BOARD OF ARTIFICIAL PERSON




For address proof of company:

If owned premise: ANY ONE OF ELECTRICITY BILL / MOBILE BILL / TELEPHONE BILL MUST NOT BE OLDER THAN 2 MONTHS* ALONG WITH NOC

If rented premise: ANY ONE OF ELECTRICITY BILL / MOBILE BILL / TELEPHONE BILL MUST NOT BE OLDER THAN 2 MONTHS* ALONG WITH NOC & RENT AGREEMENT

Minimum 2 people (natural & artificial both) can register a private limited company.

Minimum 2 directors are required to register a private limited company. At any time, if minimum number of directors falls below 2, there comes a statuary default.

As per Section 165(1) of the Act states that an individual can hold the office of director simultaneously in 20 companies. The number of 20 companies includes the office of alternate directorship. an individual can't be a director in more than 20 companies at a given time. However, the utmost number of public companies during which an individual are often a director simultaneously is 10. Yes! A natural person can be a director, a member and member & director both.

Members & shareholder are usually same terms. Equity Shareholders are often referred to as members also. Members or Equity Shareholders are owners of the company. Directors are the agents like hand, leg, ears & eyes of the company. The company functions through directors. The directors are usually appointed by shareholders. Since a private limited company is closed ended company usually a person is both the director & shareholder. Collectively all directors are called board of directors.

Like at time of registration of property, We pay the stamp duty; in the same way, at time of registration of a company we have inform the capital (funds) that we may infuse for operations now or in future, accordingly decide a upper limit of investment in terms of capital. This amount of capital is called Authorized Capital & we pay stamp duty on it. It is amendable. When we increase we pay additional stamp duty. The part of Authorized capital that has been actually invested in the company is called paid-up capital.

Limited liability means suppose a member subscribed capital of Rs. 100,000/- but paid Rs. 60,000 to the company. The company meets losses & become insolvent / bankrupt. The liability of that member shall be limited to Rs. 40,000/- only be the losses of 4 crores or more or that person may have capability to fulfill the losses from his personal property

Any type of legal business activities can be performed by Private Limited Company. It is to be noted that there are lot of legal business activities that may require extra license also. For example, for medical business you need a drug license & for supply of security guards you need PSARA License.

It depends on nature of company like manufacturing company the rate of tax is 15% & other the rate of tax is 22%. After reducing all the expenditures from gross receipt, we calculate Net profit & apply rate of tax on such amount to calculate tax amount.

There are lot means to plan your tax & finance even to secure your family in private limited company. For example, salary, directors sitting fees etc. are some of the head, we can plan.