One of the modes of doing business in India, that is gaining popularity, is by way of setting up the Private Limited Companies. Most of the people taking up their start up dream is by incorporating the private company. A closely held company with a private ownership is called a Private Company. Its shares are not offered to the public for sale and it operates under legal requirements which are less stringent than those of a public company.
Checking the name availability of the Company and applying to ROC for obtaining the approval of the name.
Applying for the DIN and digital signatures of the Directors of the Company.
Drafting of the Memorandum and the Articles of association of the Company
Filing/ E-filing of the all the relevant documents with the ROC and obtaining the Certificate of Incorporation of Company
Opening the bank account and applying for PAN/ TAN/ other registrations.
– The Director needs to be over 18 years of age and must be a natural person. Foreign nationals can also be directors in an Indian Private Limited Company. However, out of the 2 directors, atleast 1 should be an Indian resident.
– Yes, Company can be given any name provided it should comply with the rules as laid down in the Companies (Incorporation) Rules, 2014.
– Yes. DIN is a unique identification number that is required for all the Directors and DSC is required for the Directors to sign the forms electronically.
– Yes, a Foreign National or an NRI Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.
– No it is not mandatory to have a proper place of business to incorporate a Company. However, you shall need to have a place which shall act as the Registered Address of the Incorporated Company.
– For Domestic Companies: September 30 of each year
– For Companies governed by Transfer Pricing provisions: November 30 of each year.
– The date of issuance of Certificate of Incorporation of the Company shall be the date of incorporation of the Company.
– Yes, as per the provisions of the Companies Act, 2013, all companies shall need to get its accounts audited by the Statutory Auditor, who shall be Chartered Accountant or a firm of Chartered Accountants.
– Before April 1, 2017:
All companies: 30% as increased by surcharge and education cess
– After April 1, 2017:
Companies having turnover < Rs. 50 crores: 25% as increased by surcharge and education cess.
Companies having turnover > Rs. 50 crores: 30% as increased by surcharge and education cess.