Points to remember before starting up a PVT LTD Company

Once you are convinced with the fact that it is the Private Limited form of entity required by your business, you must get prepared for the same. Following are the points to be kept in mind:

The name of the company is the first and foremost thing to be decided as it may take time to get a company registered if the promoters do not come up with a unique and meaningful name;

Second point to be kept in mind is about the objects which would be carried on in the private limited after its registration. The objects are contained in the memorandum of a Private Limited and are divided into two parts- main objects and other objects;

Third point of interest is about the location of the company. It is very important to find a suitable registered office of the Private Limited from where all the operations of the company can be managed. A centralized and well-planned location for the Private Limited may attract more and more customers, thereby adding to the profitability of the business;

The next comes the authorized share capital with which the Private Limited shall be registered. The authorized capital is the declaration by the shareholders about their contribution into the company.

The Private company may be either limited by shares or may be limited by the liability. Now, we have the provision in the Companies Act, under which a Private Limited can be registered without any capital.

Then there shall be the finalization of the shareholders and the Board of Directors of the company. The Directors are the faces who run the company and the shareholders are the promoters who invest in the Private Limited. Both Directors and shareholders can be similar person.

Last thing which the promoters of a Private Limited shall keep in mind is about the shareholding held by each one of them. It determines the control of each of the promoters over the income and affairs of the Company.

Post Incorporation Steps by a PVT LTD Company

After your Private Limited Company has come into the existence, you need to comply to the following in order to maintain a smooth flow of operations:

Verification of the Registered Office Address

It shall be done through the Form INC 22 and must be files within 30 days of the incorporation of the Private Limited. The Form INC 22 shall be accompanied by necessary documents as mentioned under the Documents for Registered office; Putting up of Company Name Board

A clear and complete Name Board of the company consisting of details such as CIN, Registered Office Aggress, GSTN, Phone numbers, Email, fax, website address etc., shall be put in English and Hindi or any other vernacular language of the state, where the registered office of the Private Limited is situated. Such name board shall be put outside every office of the Private Limited. Filing of INC 20 A

Within 180 days of incorporation of the Company, a declaration, attested by the Director of the Company, shall be filed with ROC that each subscriber to the memorandum has consented to the share value taken by them. Appointment of Auditor Soon after the Private Limited comes to the existence, there shall be appointed before the first Annual General meeting of the Company, the statutory auditor who shall hold office till sixth AGM until and unless ratified or a resignation is served.

Annual Compliances for a PVT LTD Company

Every Private Limited Company shall adhere to certain yearly compliances applicable to them from time to time. These can be enumerated as below:

Board Meetings

There shall be conducted, at least two Board meetings, by a Private Limited, in a financial year. Also, it is to be kept in mind that proper minutes of such meetings shall be maintained in the minute book of the Company. The Board meetings shall be attended by the Directors of the Private Limited. Annual General Meeting

Every Private Limited shall conduct an Annual General Meeting of its shareholders, once in a year to discuss the agenda’s such as auditor’ appointment, declaration of dividend, etc. Appointment of Auditor

The first auditors of the company shall be appointed within 30 days of the incorporation or at the first Annual General Meeting of the company and soon after the appointment Form ADT 1 shall be furnished to the ROC; Directors Disclosure

It shall be made in Form MBP 1 by each director of the Private Limited before the first Board Meeting of the Company; Annual Returns

Form MGT-7 shall be filed in respect of Annual Returns within 60 days of the conclude of the Annual General Meeting; Annual Financial Statements

It shall be filed in Form AOC 4 every year presenting the statement of Balance year and profit and loss account of the company for the preceding financial year. The form AOC 4 shall be filled within 30 days of the end of the Annual General Meeting. Income Tax Returns

Every Private Limited shall file the return of its Income Tax by 30th September of each year for the income earned in the previous financial year. GST Returns

To be filed on monthly basis. Other Periodic Compliances Like change in directors, increase in capital, etc. shall be done as on date basis.

Restrictions upon a Private Limited Company

Every Private Limited Company shall adhere to the following restrictions as prescribed under the Act:

There shall be restriction on the transfer of shares by the shareholders of the Private Limited Company;

The total number of shareholders in a private company, shall at no point of time, increase beyond 200;

There shall be prohibition on the subscription of shares by the general public in a private limited;

Timeline for Private Company Registration

Total Timeline 8-10 Working Days;

Name Approval 2 Working Days;

Drafting MOA and AOA 2 Working Days;

Drafting of SPICE- Part B 2 Working Days;

Certification of Incorporation 3 Working Days.

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