What is a private limited company?

As per section 2(68) of Companies Act, 2013 “private company” means a company having a minimum paid-up share capital of one lakh rupees or such higher paid-up share capitalas may be prescribed, (Minimum Rs.1 Lakh) and which by its articles,

(i) restricts the right to transfer its shares;

(ii) Except in case of One Person Company, 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:

Provided further that—

(a) Persons who are in the employment of the company; and

(b) Persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and

(iii) Prohibits any invitation to the public to subscribe for any securities of the company

All companies are governed by Ministry of Corporate Affairs (MCA).

Basic requirements of a Private limited company:

Registration of a private limited company:

• Application for digital signature certificate
• Application for Directors identification number
• Name approval
• Form INC 32
• E-MOA (INC 33)
• E-AOA (INC 34)
• PAN and TAN application

Statutory Compliances:

All private limited companies are required to file Income Tax return 6 as per the Income Tax act.

All company shall register for GST if the exemption limit is exceeded or through voluntary registration

Other compliances as prescribed by any other act or law.