A Private Limited Company (PLC) is one of the most common types of legal entity in India. Private Limited Companies are governed by the Companies Act, 2013 and require a minimum of 2 Directors and 2 Shareholders with one of the Directors being an Indian Resident and Indian Citizen.
To register a PLC, the proposed directors must present the following documents
In setting up a company in India, shareholders can choose how much capital they want to contribute. The face value, the total value of which can be issued, is determined by the company.
To reserve a company name in India, an application must be submitted to the Ministry of Corporate Affairs. After reviewing the application, the Ministry may approve the name or choose to include one or two other names along with the business aims of the company.
Companies in India must comply with several regulations to avoid penalties and prosecution. For example, within 30 days of incorporation, all firms must appoint a practicing and licenced accountant, and every year directors must complete a digital identity verification process.
All Indian companies must keep a registered office in India. As a result, a company's registered office cannot be vacant land or a construction site. If the registered office is changed within the same city or by the same Registrar of Companies, the process is simple.
The directors of a newly incorporated company can choose to obtain GST registration during the company registration process, but the company is not required to do so unless its total turnover reaches a certain limit.
Within 180 days of company registration, a bank account must be opened in the company's name and the subscription amount deposited. If these steps are not followed, the certificate of commencement of business will not be issued and a penalty will be imposed.
A corporation is a legal entity that can own property, incur debts, and hire people. Corporations can have limited liabilities, meaning the shareholders are not liable for more than what they invested in the company.
A corporation can be a terrific method to run a firm, but it is not for every entrepreneur. Compliance costs can be substantial, and maintaining a business can be a costly year in and year out.
All directors of Indian companies must have a PAN card, and for foreign directors and shareholders, a passport is also necessary. Aadhaar is required for all directors.
Unregistered business entity controlled by a single individual
A Limited Liability Partnership is a hybrid entity with the characteristics of a partnership firm and the liabilities of a corporation.
A registered entity has limited responsibility for its owners and shareholders.
Sole Ownership
Designated Partners
For One Person Company
Non Transferable
Transferable
Different registration fees as per the size of the company and the number of shareholders
In accordance with the Companies Act 2013, the Procedure is as follows Step 1: Get a DIN step 2: Request a DSC Step 3: Approval of the Company Step 4: Submit a Company Incorporation Application Step 5: Get Certificate of Incorporation.
After 30 days of incorporating PLC, the Board of Directors must appoint a practising Chartered Accountant.
The ITR returns must be submitted annually on Form ITR 6 by Private Limited Businesses with Indian registrations.
AOC 4 and MGT 7 are informed that each year, corporations with Indian registrations must submit the MCA annual return.
Appointing an auditor and filing annual returns and income taxes must both happen within 30 days. Along with this, it's also important to finish mandatory compliances like the "Commencement of Business" and DIN eKYC forms.
For some firms, filing for GST is required. Businesses engaged in interstate business, including e-commerce activities, and businesses with annual revenue above Rs. 40 lakhs are required to obtain the relevant licences.