GETTING STARTED WITH A PRIVATE LIMITED COMPANY
Hello Friends, Now these days India experiencing increase in
start-ups. Current Govt. is imparting a various facilities to new entrepreneurs
to start & fund their ventures.
A Private Limited Company is the most preferred business
structure for starting new venture. In this post we will be discuss the
benefits & characteristics of Private Limited Company, which make its
quality from other choice.
There are few Steps for Incorporated a Private Limited Company.
i.e.
·
Obtain
Digital Signature Certificate (DSC)
·
Obtain
Director Identification Number (DIN)
·
Reservation
a Unique Name (RUN)
·
Certificate
of Incorporation
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On the receipt of Certificate of Incorporation, the Private
Limited Company comes into existence in the eyes of law. The promoters and
directors may now commence the operations and business activities in the name
of the company. Also, the amount of subscribed and paid-up share capital shall
be deposited in the Current Account in the name of the company.
The details of incorporation and directors of company will
be available on MCA portal under Master Data of the Private Limited Company. In
addition, the details and documents of the company will also be accessible by
public through payment of fees prescribed.
Advantages of Private
Limited Company…..
1. Separate Legal Entity : The shareholders and the directors are separate from the company. They are not liable for liability of company.
2. Free Transferable : Shares of a Private Limited Company is free and easy as compared to a proprietorship business.
3. Uninterrupted Existence : Since Shareholders / directors are separate from company, hence company can exist even after the death of any / all shareholders / directors.
4. Ownership is separate from management : The Status of Directors and Shareholders are separate. Their rights & duties are different. However it is possible that an Individual may be shareholder as well as director.
Manage A Private Limited
Company….
Taxation Requirement
for a Private Limited Company…..
·
Income Tax Return
: A company
was required to filed its income tax return irrespective of profit amount. A
startup company was exempted from payment of Income tax for Three years.
·
Minimum Alternate Tax : Under the Income Tax Act, there are various incentive available to
companies in result profit computed under income tax act will be nil or
negative in contrast profit reported in books. In that case companies are
required to pay tax @ 18.5% on its books profit.
·
Tax Collection at Source
(TCS) / Tax Deduction at Source (TDS) : A company is required to deduct tax at source
at the time of making various payments. In same way it’s required to collect
tax at the time of receiving certain payments.
·
Goods & Services Tax (GST) : A
company is required to collected and paid GST on its supplies if any of the following
conditions is met:-
1.
Crossed Turnover of Rs. 20 lacs.
2.
Made Supplies in other state.
3.
Use services of e-commerce operator.
4.
It self an e-commerce operator.
5.
Making Import / Export.
Secretarial
Requirement for a Private Limited Company…..
·
Board Meetings : In the Companies Act, 2013 required
that the directors of the company must meet at least 4 time in a calendar year &
gap between two meetings shall be not exceeds 120 days.
·
Annual Audits : A Company is required to
gets it books of accounts audited by an Independent Chartered Accountants. In
additions to its some companies are required to get secretarial audit and cost
audit done by independent Company secretory and cost and Management accountant.
·
Filling of Annual
Accounts :
A company is required to file its annual accounts and annual return with
registrar of companies.
Closing a Private
Limited Company….
A
Company may be closed in either of the two ways. i.e.
1.
Under
Insolvency & Bankruptcy Code : Where a company makes a default in payment of any
due amount, it may itself or its creditor may file application under Insolvency
and Bankruptcy code. In such case authority may be ordered to winding up.
2.
By Company Law
Tribunal : A company itself or registrar of company may file an application with
National Company Law Tribunal for winding up. Where application filed by
company it must be approved by 75% of shareholders of the company.
Conclusion : The
registration of Private Limited Company in India can be processed with ease
through session of Practicing Professional. The registration of Private Limited Company in India can be processed
with ease through session of Practicing Professional. Further, after online ltd
company incorporation, the promoters and directors are required to maintain the
active status of the company by compliance with the provisions of the company
by filing the annual returns and forms as prescribed by Indian Companies Act,
2013.
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