A private limited company is a type of privately held small business entity. Private Limited Company registration is the most popular legal structure option for businesses in India. Private limited company can have a minimum of two members and a maximum of 200 members. The directors of a private limited company have limited liability to creditors.
1) Separate Legal Entity - A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
2) Uninterrupted Existence - A company has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal entity, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
3) Borrowing Capacity - A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
4) Easy Transferability - Shares of a company limited by shares, are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.
5) Owning Property - A company being a juristic person, can acquire, own, enjoy and alienate property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
6) Limited Liability - Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a company the liability of the members in respect of the company's debts is limited.
1) Apply for Sales Tax / Service Tax Registration based on the nature of Business.
2) Filing Income Tax Return of Company on or Before 30th September every year. 3) To maintain proper Books of Accounts. 4) To Maintain Minutes Book and all statutory registers. 5) Get your account books Audited Every Year 6) Filing of form MGT-7,AOC-4 and ADT-1 every Year. 7) Appointment of Auditor - No intimation required to be given to ROC in case of First Auditors. Form ADT 1 to be filed within 15 days of 1stAGM of the Company.
As per new law, minimum capital Rs. 100000 to form Private limited company is withdrawn. Now Assessee can open company with minimum capital of Rs. 2. - Update of MCA