Private Limited Company

Important Documents for Private Limited Company Registration

calendar08 Mar, 2024
timeReading Time: 5 Minutes
Important documents for private limited company

One of the most popular business forms in India is the private limited company, which is a privately controlled organization with limited liability. Its many benefits, which include limited liability protection, simplicity in establishment and upkeep, and position as a separate legal organization, are principally responsible for its appeal.

A private limited company needs a minimum of two members and two directors in order to operate, and it benefits from legal independence from its owners. Moreover, a private limited company’s shareholders are solely accountable for the amount of their ownership.Even in the event that the firm experiences financial difficulties, its assets are protected.

A private business is limited to 200 shareholders and requires a minimum of two. Within a private limited company, there are limitations on the transfer of shares. Only the Board of Director’s permission or as stipulated in the company’s Articles of Association may be used to transfer shares. Legal and regulatory requirements for private limited corporations include keeping accurate financial records, holding annual general meetings, and submitting yearly reports to the ROC. A private firm has a unique legal personality of its own. Under its own name, it is able to enter into contracts, possess property, and bring or defend legal action.

Types of Private Limited Company

There are mainly three main categories found in a private limited company in India:

TypeDescription
    Company Limited by GuaranteeUnder the terms of the Memorandum of Association, members’ liability is capped by the amount of guarantee. This guarantee is solely used in the winding down process.
  Company Limited by SharesThe liability of shareholders is capped at the number of nominal shares specified in the Memorandum of Association.
  Unlimited CompaniesOwners of limitless firms are personally liable indefinitely for the debts and liabilities of the business. They are still regarded as a distinct legal body, and no member may be sued individually.

Important Documents for Private Limited Company

There are many important documents for private limited company which are required to be submitted at the time of registration. Non-compliance with these important documents for private limited company can result in rejection or delay in the registration process. The key documents for the private limited company are:

1. Memorandum of Association

MOA is one of the important documents for private limited company. A Memorandum of Association, or MOU, is a formal document that contains essential corporate information. The company’s objectives, its authorized representatives, its decision-making authority, its organizational rules, the obligations of its members, and its classification as limited by shares or guarantees fall under this category. It sets the parameters in which a business functions.

2. Articles of Association

AOA is the often-used acronym for articles of association and is one of the important documents for private limited company. It functions essentially as a detailed document that outlines a company’s operating foundation. It covers a number of important topics, including the right of company members to vote, the decision-making methods, the procedures for issuing shares and distributing dividends, protocols for appointing directors, auditing rules, and more. Similar to MOA, AOA is also among the important documents for private limited company.

3. Photographs

The necessary paperwork for registering a Private Limited Company includes a passport-sized photo of each director. This picture has to be very apparent. Unclear photos will not be allowed. Additionally, remember to take care of anything else, and the photograph should be recent. Anything older than six months is not appropriate for a photo.

4. PAN Card of Shareholders and Directors

The Permanent Account Number (PAN) card is one of the important documents for private limited company. Individuals and companies can obtain PAN cards or unique identification numbers from India’s Income Tax Department. All directors and shareholders of the organization must possess a PAN card. The PAN card may be used for a variety of tasks, such as opening bank accounts, submitting taxes, and conducting financial transactions. It serves as identity proof in addition to being used by the government to keep an eye on financial activities and tax compliance. To obtain a PAN card, an application for a PAN must be sent to the appropriate authorities along with the necessary fees and documentation.

5. Proof of Address

A private limited company’s registration process entails confirming the directors’ and shareholders’ identities and addresses, as well as the registered office address. The official location and place for all official communication and legal papers is the company’s registered office. The following documents are commonly regarded as proof of the registered office address:

    Proof of Property OwnershipIf the company is the owner of the registered office, then a lease, transfer deed, or sale document serving as proof of property ownership must be submitted.
  Utility BillsUtility Bills: Up-to-date utility bills, including those for gas, water, or electricity, can also be used as proof of the registered office’s address.
Rental AgreementIf the registered office is rented, documentation in the form of a rental agreement with the property’s owner and rent receipts are needed. It is possible to verify the registered office address with a current property tax receipt.

6. Proof of Identity

A Private Limited Company can be established with two directors and two stockholders, as was previously discussed. At the start of the registration procedure, identification documentation for each director and shareholder will be necessary and is also one of the important documents for private limited company. ID proofs include the directors’ and shareholders’ voter cards, PAN cards, and Aadhaar cards. Proof of identification for each member must be supplied when submitting an application for registration.

7. Director’s Identification Number

A DIN is among the important documents for private limited company. A director’s identification number, or DIN, is assigned to each director of the company. A DIN must be obtained by each director prior to the establishment of a firm. The DIN is valid for life and is issued by the Ministry of Corporate Affairs (MCA). The DIN is used to verify the directors’ identities and credentials. It helps guarantee that only qualified and capable individuals are selected to be directors of the organization. With the help of the DIN, a database containing information on every director in the country is also updated and may be used for regulatory purposes.

8. Digital Signature Certificate

To sign documents transferred electronically, a digital signature certificate (DSC) is a secure electronic key and is considered an important documents for private limited company. A DSC is given by a Certifying Authority (CA) and is used to confirm the signer’s identity. A DSC is required for each director and shareholder who signs the registration documents for the private limited company. By verifying the legitimacy and authenticity of the documents, the DSC assists in preventing fraud and misuse. The registration process is more dependable and safe, thanks in part to the DSC.

9. Director’s Bank Statement

It takes a minimum of two directors to form a Private Limited Company. The directors are the ones who really manage the business and carry out the company’s tasks on its behalf. As a result, several director papers must be added to the registration application at the time of formation. Among them are the directors’ bank statements. Make sure the correct address is listed on bank statements at all times. Hence, bank statements are also important documents for private limited company.

Important Documents for Private Limited Company: NRI Directors and Shareholders

Some important documents for the private limited company are specifically required in the case of NRI shareholders and directors.

  • One of the important documents for private limited company for NRI directors and shareholders is a copy of their passports.
  • One of the other important documents for private limited company is the identification proof of the NRI shareholders and directors.
  • Other than that bank statement are also important documents for private limited company that are NRI directors and shareholders is the statement of the bank.
  • The DIN is also one of the important documents for private limited company in the case of NRI directors.
  • Along with DIN, the DSC of NRI directors is also among the important documents for private limited company registration.
  • Proof of address is also an equally important document for the private limited company at the time of registration procedure.

There are other additional important documents for private limited company registration, which can vary on a case-by-case basis.

Private Limited Company Registration with Corpbiz

By completing the required paperwork, abiding by pre- and post-incorporation rules, and meeting several requirements that are a part of the company registration procedure, Corpbiz makes the process of registering a business easier. In addition, strict adherence to specific MCA regulations is necessary to avoid steep penalties and late fees. In the absence of professional assistance, this process may seem daunting and intricate. Corpbiz provides expert support for the online business registration process on the MCA website. Our team of experts will assist you with registering your business at every stage.

Frequently Asked Questions

  1. Is GST registration required?

    For certain companies, filing for GST is required. Businesses having revenue of more than Rs. 40 lakhs and those engaged in e-commerce or any other interstate business must get the same.

  2. Which form must be submitted for a private limited company's ITR filing?

    Every year, Private Limited Companies with an Indian registration must submit their ITR reports using Form ITR 6.

  3. Is it possible to form a private corporation using a home address?

    Yes, to be incorporated, the business must present proof of address. However, a home address can be used as the company's registration address with permission of the Ministry of Corporate Affairs (MCA). As a result, the registered address can be any address.

  4. Is it possible for more than one director to receive a DIN using the SPICE+ INC 32?

    A maximum of three directors may use the integrated form to file an application for DIN allocation at the time of the company's establishment.

  5. What is the minimum number of directors needed to establish a Private Limited Company?

    A private limited company must have at least two directors, one of whom must be a permanent resident of India.

  6. What distinguishes a shareholder from a director?

    An owner of a corporation who possesses specific shares in the business and has their name included in the membership register of the business is known as a shareholder or member. On the other hand, a director oversees the daily operations of a company. A shareholder and a director may or may not be the same individual.

  7. Who can be a member of a Private Limited Company?

    Any person or entity, including foreign nationals and NRIs, may join or become a shareholder of a private limited company. However, this individual has to be at least eighteen years old and have a current PAN card.

  8. Can an individual serve as both a director and a shareholder of the company?

    Yes, an individual can serve as both a director and a shareholder in a firm. However, you can choose a different person to serve as a director and shareholder if you wish to separate ownership and management.

  9. Can Foreign Direct Investments (FDI) be invited by a Private Limited Company?

    Yes,in India, private limited companies are ideal organisations for getting FDI and venture money. Private Limited Businesses have a lot of room to expand.

  10. Can foreign nationals or entities register a corporation in India, including NRIs?

    Yes, pursuant to the Foreign Direct Investment guidelines established by the RBI, NRIs, foreign citizens, and foreign corporations are permitted to create a company and make investments in India. On the other hand, Indian incorporation regulations mandate that the firm have one Indian national on the Board of Directors.

  11. Which form must be submitted in order for a company to file its yearly returns?

    Every year, firms with an Indian registration must notify AOC 4 and MGT 7 through the MCA annual return.

  12. Are AADHAR and PAN required for MOA and AOA subscribers?

    No, with regard to a subscriber who possesses a valid DIN, the Companies (Incorporation) Third Amendment Rules, issued July 27, 2016, have loosened the need to attach proof of identification and residency.

Read Our Article: Mandatory Annual Compliances Of Private Limited Company

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