What Is A Private Limited Company?
What Is A Private Limited Company?
a) Company has to amendment his MOA according to indian companies act 1956
In addition to the above legal entities, the following types of entities are available for
foreign investors/foreign companies doing business in India:
• Liaison Office
• Representative Office
• Project Office
• Branch Office
• Wholly owned Subsidiary Company
• Joint Venture Company
• Members' (the directors and shareholders) financial liability is limited to the amount of money they have paid
for shares.
• The management structure is clearly defined, which makes it easy to appoint, retire or remove directors.
• If extra capital is needed, it can be raised by selling more shares privately.
It is simple to admit more members.
• The death, bankruptcy or withdrawal of capital by one member does not affect the company's ability to trade.
• The disposal of the whole or part of the business is easily arranged.
High status.
• Requirement to register the company with the registrar of companies and provide annual returns and
audited statement of accounts. All details of the company are available for public inspection so there can be
no secrecy. There are penalties for failing to make returns.
• Can be more expensive to set up.
• May need professional help to form.
• As a director, you are treated as an employee and must pay tax.
• The advantages of limited liability status are increasingly being undermined by banks, finance house,
landlords and suppliers who require personal guarantees from the directors before they will do business.
A stamp duty is required to be paid on the MOA and on the AOA. The stamp duty depends on the authorized share
capital.
1. MOA and AOA - These are required to be executed by the promoters in their own hand in the presence of a
witness in quadruplicate stating their full name, father's name, residential address, occupation, number of
shares subscribed for, etc.
2. Form No. 1 - This is a declaration to be executed on a non-judicial stamp paper of INR 20 by one of the
directors of the proposed company or other specified persons such as Attorneys or Advocates, etc. stating
that all the requirements of the incorporation have been complied with.
3. Form No. 18 - This is a form to be filed by one of the directors of the company informing the ROC the
registered office of the proposed company.
4. Form No. 29 - This is a consent obtained from all the proposed directors of the proposed company to act as
directors of the proposed company. (Not required in case of private company).
5. Form No. 32 - This is a form stating the fact of appointment of the proposed directors on the board of
directors from the date of incorporation of the proposed company and is signed by one of the proposed
directors.
6. Name approval letter in original.
7. Power of Attorney signed by all the subscribers of MOA authorizing one of the subscribers or any other
person to act on their behalf for the purpose of incorporation and accepting the certificate of incorporation.
8. Power of Attorney in case of a subscriber who has appointed another person to sign the MOA on his
behalf.9. Filing fees as may be applicable.
How is the certificate of incorporation
issued?
After the documents in FAQ 5 are filed, the ROC calls the attorney on a specific date for scrutiny and making the
corrections in the MOA and AOA filed. On complying with the same, the certificate of incorporation is granted to the
attorney.