According to the section 2(68) of Companies Act, 2013, a private limited company is defined as:
“A company having a minimum paid-up share capital as may be prescribed or such higher paid-up share capital as may be prescribed, and which by its articles:—
(i) restricts the right to transfer its shares;
(ii) limits the number of its members to two hundred:
Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member;
(iii) prohibits any invitation to the public to subscribe for any securities of the company.”
In other words, a private limited company is a company that has a minimum paid-up share capital.and the member of the company maximum 200 members. The shares of a private limited company cannot be freely transferred to the public, and the company cannot invite the public to subscribe for its securities.
Private limited companies are a popular choice for businesses in India Auriga Accounting private limited provides you advantages inculding:-
ADVATAGES
Limited liability: The shareholders of a private limited company are only liable for the debts of the company up to the amount of their investment. This means that their personal assets are not at risk if the company goes bankrupt.
Separate legal entity: A private limited company is a separate legal entity from its owners. This means that the company can own property, enter into contracts, and sue or be sued in its own name.
Credibility: A private limited company is seen as more credible than a sole proprietorship or partnership. This can be important for attracting customers, investors, and employees.
WHO CAN ELIGIBLE TO OPEN PRIVATE LIMITED COMPANY
According to the Companies Act 2013, anyone can open a private limited company in India, as long as they meet the following eligibility criteria:
They must be an Indian citizen or a foreigner who has been granted a visa to work in India.
They must be at least 18 years old.
They must not have been convicted of any serious crimes.
They must have a valid PAN (Permanent Account Number) and Aadhaar (Unique Identification Number).
In addition to these general eligibility criteria, there are also some specific requirements for who can be a director or shareholder of a private limited company. For example, a
Director of a private limited company must be a natural person who is at least 18 years old and has a valid PAN and Aadhaar number.
A shareholder of a private limited company can be a natural person or a body corporate.
If you are considering opening a private limited company in India, it is important to consult with Auriga Accounting private limited, Auriga Accounting experts helps to register the private limited.and also advise to save the taxes and how you grow your business with Auriga Accounting.
How much does it cost to open a private limited company
Auriga Accounting offers you to registered your private limited company just RS. 1999/- .As per as Auriga Accounting experts guide you everything about the company and Auriga Accounting team provides your proper knowledge and brief about the advantages of private limited company. Every thing available in one roof AURIGA ACCOUNTING PRIVATE LIMITED.
IN this package auriga accounting provides you –
1. DIN NUMBER (DIRECTOR IDENTIFICATION NUMBER)
2. DSC ( DIGITAL SIGNATURE)
Advantage of open private limited company
Here are some of the Advantage of registering a private limited company in India under the Companies Act 2013
Auriga Accounting Private Limited Provide best service to their Clien’ts
Limited liability: The shareholders of a private limited company are only liable for the debts of the company up to the amount of their investment. This means that their personal assets are not at risk if the company goes bankrupt.
Separate legal entity: A private limited company is a separate legal entity from its owners. This means that the company can own property, enter into contracts, and sue or be sued in its own name.
Credibility: A private limited company is seen as more credible than a sole proprietorship or partnership. This can be important for attracting customers, investors, and employees.
Flexibility in management: The management of a private limited company is flexible. The shareholders can appoint directors to manage the company, or they can manage the company themselves.
Tax benefits: Private limited companies are subject to lower taxes than other types of businesses.
Access to government contracts: Private limited companies are often eligible to bid on government contracts.
Disadvantage of open private limited company
Cost: The cost of setting up and maintaining a private limited company can be high. This includes the cost of registering the company, the cost of filing annual returns, and the cost of paying taxes.
Regulation: Private limited companies are subject to more regulation than other types of businesses. This can be a burden on businesses, especially small businesses.
Complexity: The management of a private limited company can be more complex than the management of other types of businesses. This is because there are more rules and regulations that need to be followed.
Taxation: Private limited companies are subject to different taxes than other types of businesses. This can make it difficult to calculate the company’s tax liability.
Red tape: There is a lot of red tape involved in setting up and running a private limited company. This can be a burden on businesses, especially small businesses.
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Best way to register private limited company
There are many ways to register a private limited company in India. But Cheap and Best way to register private limited company is Auriga Accounting Private Limited.
Auriga Accounting Private Limited is an accounting firm that offers a variety of services to businesses in India. Some of the benefits of using Auriga Accounting Private Limited
Experience: Auriga Accounting Private Limited has over 10 years of experience in the accounting industry, which means they have a deep understanding of the Indian tax and regulatory environment.
Expertise: Auriga Accounting Private Limited has a team of experienced accountants who are proficient in a variety of accounting tasks, including bookkeeping, tax preparation, and financial reporting.
Convenience: Auriga Accounting Private Limited offers a variety of services that can be done remotely, which means you can get the help you need without having to come into the office.
Cost-effectiveness: Auriga Accounting Private Limited offers a variety of pricing options that can fit your budget.
Auriga Accounting Private Limited is best Accounting Company in Delhi; INDIA.
Clien’t satisfaction company.
Auriga Accounting Private Limited.
Private Limited Company Registration Compliances
After the process of registration in India, it is necessary to adhere to various compliance regulations in order to avoid potential fines and legal repercussions. Some of the key post-registration requirements include: Auriga Accounting Private Limited helping You
Auditor Appointment: Within 30 days of incorporation, every Indian company must appoint a practising, certified, and registered Chartered Accountant(CA).
Director DIN KYC: Every year, individuals who possess a Director Identification Number (DIN) should undergo a DIN KYC process. During the company incorporation process, the company can get the DIN. This helps to verify the phone number and email address on file with the MCA.
Commencement of Business: The shareholders of the company must deposit the subscription amount specified in the MOA within 180 days of incorporation, and the company must create a bank current account. Therefore, to receive a business incorporation certificate, the shareholders of a company established with a paid-up capital of ₹1 lakh must deposit ₹1 lakh into the company’s bank account. They should also file a copy of the bank statement with the MCA.
MCA Annual Filings: Every financial year, the MCA must get a copy of the financial statements from each company registered in India. A corporation that incorporates between January and March may elect to include the first MCA annual return in the annual filing for the following fiscal year. Forms MGT-7 and AOC-4 are the components of the MCA yearly return. The Directors and a working professional must digitally sign both of these documents.
Income Tax Filing: Every financial year, businesses should file an income tax return using form ITR-6. The business should file the income tax before the deadline for each financial year, irrespective of the date of incorporation. The company’s income tax return must be digitally signed using the director’s digital signature.
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Reasons to Consider Auriga Accounting for Private Limited Company Registration
Auriga Accounting Private Limited offers a completely online private limited company registration process, allowing you to register your entity without leaving the comfort of your home. Our experts can complete the entire incorporation process.
FAQs on Private Limited (Pvt Ltd) Company Registration Online In India
What Are the requirement to open private limited company
private limited company must show a minimum number of two and a maximum number of 200 members.
There must be at least two directors and two shareholders.
Each director must have a Directors Identification Number (DIN)
PAN card copy of directors/shareholders and Passport copy for NRI subscribers.
What documents are required to complete the process?
Passport size photos of directors.
Address proof of directors.
Photo ID proof of directors.
Specimen signature.
Self-declaration about your directorship in other companies.
Rent agreement of your registered office.
Can I register Private Limited Company Myself?
If you intend to register a new company in India, you must submit an application to the Ministry of Corporate Affairs (MCA). You make the application online at the MCA portal remotely too. For registration, you’ll need a Digital Signature Certificate(DSC), and Director Identity Number(DIN), among other things.
Are two directors necessary for registration of a company?
There must be at least two directors and two shareholders. Each director must have a Directors Identification Number (DIN)
Can the limited liability partnership (LLP) be converted to a private limited company?
An LLP can be converted into a Pvt. Ltd. company as per the provisions contained in Section 366 of the Companies Act, 2013 and Company (Authorised to Register)
