Private Limited Company Registration and Compliance
Overview of a PLC
Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Its registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013, and the Companies Incorporation Rules, 2014.
Everything You Should Know About a Private Limited Company
- Limited financial liability of shareholders – no risk to personal assets.
- Perpetual existence – continues even if the owner exits or passes away.
- Flexible share transfer among known investors, keeping control within a small group.
- Higher chances of getting seed and venture capital funding.
Documents Required for a Private Limited Company Registration
- Minimum 2 Directors (At least one must be an Indian Resident)
- Minimum 2 Shareholders.
- PAN Card of Directors.
- DIN of Directors.
- Address Proof of the Firm.
- DSC (Digital Signature Certificate).
- Minimum Authorised Share Capital: ₹1,00,000.
Compliance of a Private Limited Company
General Advisory
- Company rubber stamp and letterhead are advisable after incorporation.
Board Meeting
- First Board Meeting within 30 days of incorporation.
- Appointment of Auditor is mandatory.
- Notice to be sent 7 clear days in advance.
- Minimum 4 Board Meetings annually with max 120 days gap between any two.
First Auditor
- To be appointed by Board within 30 days of incorporation.
- Holds office till conclusion of the first AGM.
Annual General Meeting (AGM)
- To be appointed by Board within 30 days of incorporation.
Commencement of Business
- Required for companies incorporated after Nov 2018.
- Must be obtained within 180 days of incorporation.
Annual Return – Form MGT-7
- To be filed within 60 days of the AGM.
- Covers period from 1st April to 31st March.
Financial Statements – Form AOC-4
- Balance Sheet, Profit & Loss, Director’s Report.
- Must be filed within 30 days of AGM.
Statutory Audit of Accounts
- Annual audit by a Chartered Accountant is mandatory.
- Audit Report and Financial Statements must be filed with the Registrar.
Goods and Services Tax (GST) Compliance
1. GSTR-1/Sahaj:
- Monthly if turnover > ₹1.5 crores
- Quarterly if turnover < ₹1.5 crores
2. GSTR-3B:
- Mandatory monthly summary return for all
3. Annual GST Return (recommended):
- Applicable if turnover > ₹5 crores
4. Other Compliances:
- E-Way Bill
- HSN Code
- As applicable based on business type Quarterly if turnover < ₹1.5 crores
FAQS
Private Limited Company
Private Limited Company
Minimum 2 directors needed, Obtain DIN, PAN, and address proof, Submit documents on MCA portal, Incorporation certificate typically within 7 days.
Appointment of Auditor, Certificate of Commencement, AGM and Board Meetings
Director KYC, Income Tax Return,
ROC Filings.
Yes, especially if : Registered under Startup India, E-commerce company, Operating in special states with turnover > ₹20 lakhs.
DIN, PAN, Address Proof, Submit online via MCA, ,Get DSC, Certificate in approx. 7 days.
Yes. Requirements : Sale Agreement, Revised MoA, Share Capital of ₹1,00,000.
Pass Board Resolution, Update MoA, Fulfill requirements under Companies Act.
Yes. Through : Resignation or Special Resolution and Central Govt approval (if applicable)
Ensures uniqueness and MCA compliance, Avoids restricted words and trademark conflicts.
Ensures uniqueness and MCA compliance, Avoids restricted words and trademark conflicts.