PRIVATE LIMITED COMPANY Vinay Gupta Director Company India

PRIVATE LIMITED COMPANY Vinay Gupta Director Company India Advisors Private Ltd email: info@companyindia. co. in Mobile: +91 9818092002 http: //companyindia. co. in

What is PRIVATE LIMITED COMPANY? A private limited company is the company, which arranges its funds from the owners and the relatives of the owners of the company only and not from outsiders. A company whose ownership is private. As a result, it does not need to meet the strict Securities and Exchange Commission filing requirements of public companies. 2

Requirements of setting a Private Limited Company in India CAPITAL REQUIREMENT The minimum authorized share capital or the minimum funds requirement for setting a private company in India is (INR) Rs. 1, 000 3

MINIMUM MEMBERS The minimum number requirement in case of Private Limited Company is TWO. 4

DIRECTORS q Who are the directors for the Private Limited Company? The directors are the major group of stakeholders of the company. The directors are the persons who handle the operations of the company. 5

q QUALIFICATION SHARES Ø In case there is requirement as per the AOA for the director is bound to buy qualification shares. Ø If acts are done by the director prior to he or she being disqualified, the acts are considered to be valid. 6

q MINIMUM NUMBER OF DIRECTORS The minimum number of directors for a Private Limited Company are TWO. 7

Time limit to Incorporate…. The time for incorporating a private limited company is near about 10 -15 days…. . 8

How to incorporate Private Limited Company in India? Selection of type of the company. Selection of name for the proposed company. Apply for Directors Identification Number and Digital Signatures. Drafting of Memorandum and Articles of Association. Stamping, digitally signing and e-filing of various documents with the Registrar. 9

Payment of Fees. Obtaining Certificate of Incorporation. Preparation and filing of Prospectus/Statement lieu of Prospectus and e-Form 19/20 (in case of public companies) for obtaining the certificate of commencement of business. 10

NAME GUIDELINES Company Act India specify that certain words are important like India, Global, World, Industry etc and authorized capital norms are difference for the company having such special word in the name of the company. 11

The Companies Act has the following features: Ø Separate legal entity Ø Incorporated body Ø Artificial legal person Ø Perpetual succession Ø Limited liability Ø Common seal Ø Right to sue Ø Right to enter in to contracts Ø Flexibility of investment 12

PROCEDURES… Digital Signatures Director Information Number Board Meetings Annual General Meetings Annual Filling of Forms Maintenance of Statutory register & Minutes Book. 13

What is Digital Signature Certificate? Digital Signature Certificates are electronic format of physical signatures. DSC can be presented electronically to access information or services on the Internet, to prove the identity or to sign certain documents digitally. 14

DIN (DIRECTOR’S IDENTIFICATION NUMBER) No person can be appointed as a Director without getting a DIN. The compliance can be quite an irritant foreign residents, as all the documents need to be notarized. If the documents are not in English then translated version along with the original documents need to be notarized. 15

Board Meetings Periodicity of the Board Meetings Interval between two Board Meetings Day of holding meeting Time of holding Board meetings Place for holding Board Meeting 16

Board Meeting Minutes can be classified into the following three types on the kind of meeting to which they relate: Minutes of Board meetings. Minutes of meetings of committee of the board. Minutes of General meetings. 17

GENERAL MEETINGS Periodicity of the Board Meetings Interval between two Board Meetings Day of holding meeting Time of holding Board meetings Place for holding Board Meeting 18

MINUTES- Meaning The term ‘minutes’ though not defined in the Companies Act, 1956, may be considered as a written record of proceedings of a meeting of any Company duly kept in pursuance of the law. 19

Annual filling of forms…. Ø There a number of annual forms that need to be filed besides the annual financials. Ø The information is quite detailed and talks about shareholdings, directors, financials, etc. Ø All these forms are required to be certified by a practicing Chartered Accountant or practicing Company Secretary. 20

THANK YOU Vinay Gupta Director Company India Advisors Private Ltd email: info@companyindia. co. in Mobile: +91 9818092002 http: //companyindia. co. in /