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Kartik   14 June 2021

Private limited company

I plan to start a private limited company with a friend. The plan to use company for construction project. What are legal requirement to sell shares in future in the company.


Learning

 3 Replies

Sankaranarayanan (Advocate)     14 June 2021

For start Pvt Ltd in you need to register the company in ROC with the support  for which you better to consult local chartered accountant and follows as per the instruction. Need to get PAN ,GST and other license too 

G.L.N. Prasad (Retired employee.)     15 June 2021

When you are not having adequate knowledge on an issue, do not try to learn when there is urgency, entrust this to any professional like CA or Company Secretary.  Now,  such registration is made much easier through online Registration.  This is not the end, and you may have to obtain further licenses like GST, Labour, Income tax numbers,  etc. instead of wasting time on these issues, entrust this professional work to experts and focus on your strength like marketing.  If you want a glass of water, never try to dig a well by searching those points.  Yes, you may have to pay reasonable fees and those expenses are unavoidable for having peace of mind and focussing on your business.

T. Kalaiselvan, Advocate (Advocate)     16 June 2021

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014.

To register a private limited company, a minimum of two shareholders and two directors are required. MCA has recently implemented major changes to the process and made it very simple to incorporate a company.

Private Limited Company Registration Requirements

1. Minimum of two adult persons are required to act as Directors of the company

2. Minimum of 2 Directors and can have a maximum of 15 directors.

3. One of the Director of a private limited company has to be an Indian Citizen and Indian Resident.

4. The other director(s) can be a Foreign National.

5. Two persons are required to act as shareholder of a company

Private Limited Company Registration Documents Required

To register a private limited company, the company’s proposed directors would have to submit the following documents as identity proof:

  • For Indian Nationals – PAN
  • For Foreign Nationals – Passport

The proposed Directors can submit the following documents as proof of address:

  • For Indian Nationals – Passport / Drivers License / Election ID / Ration Card / Aadhar ID
  • For Foreign Nationals – Passport / Drivers License Bank Statement / Residence Card

Finally, the proposed Directors must submit the following documents as proof of residence. This document must be less than 2 months old:

  • For Indian Nationals – Bank Statement / Electricity Bill / Phone Bill
  • For Foreign Nationals -Bank Statement / Electricity Bill / Phone Bill

In case a company in India or abroad is one of the shareholders of the company, the following documents would have to be submitted:

  • Board resolution authorizing investment in the company
  • Incorporation Certificate of the Company
  • Address proof of the company

The following process for company registration in India:

First name approval is obtained for the proposed company names from the Ministry of Corporate Affairs. 

 

Digital signature must be obtained for the proposed Directors of the Company. 

On obtaining the Digital Signature, the incorporation application can be submitted in SPICe Form with the MCA.

On submission of the incorporation application, private limited company incorporation certificate along with PAN and TAN is provided within 1-2 business days by the MCA

All that is required are PAN card of the promoters, address proof and bank statement copies of the promoters along with address proof for the registered office address. A company can be started in about 3 – 7 days. If you have the necessary documents,

 


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