Private Limited Companies is a popular form of business in India. It is governed by Companies Act, Rules and MCA.
Prerequisite to start a Private Limited Company:
1. Minimum 2 Shareholder
2. Minimum 2 Directors
Benefit is Private Limited Company:
1. Separate Legal Entity
2. Limited Liability of its Members
3. Borrowing Capacity
4. Ownership on property held
5. Perpetual Succession
Company Incorporation Procedure:
Step 1: Check Name availability of Company. Company name should be unique and should be approved as per Company law. It should not match with any existing Company/ LLP/ Trademark.
Step 2: Apply for DSC- every director of the company should have a valid DSC provided by certified Authority.
Step 3: Once the name is decided, file RUN Form with ROC for the approval of name along with a fee of Rs 1000/-
Step 4: After Name is approved by MCA, next step is filing of SPICE form along with E-MOA and E-AOA.
With the new SPICE form-
Attachments to Spice Form-
Post Incorporation Requirement:
1. Appoint an Auditor within 30 days of Incorporation and file form ADT-01 with ROC.
2. Every Company is required to hold minimum 4 Board meetings in a year. For small companies, One Person Company the requirement for Board meeting is reduced to 2.
3. Every Company is required to hold 1 AGM in 1 calendar year or within 6 month from date of closure of Financial Statements.
4. Filing of Annual Returns within 60 days of holding an AGM in Form MGT-07.
5. Filing of Balance sheet, Income Statement, Director’s report within 30 days of holding an AGM in Form AOC-04.
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