PRIVATE LIMITED COMPANY

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9461620007
PRIVATE LIMITED COMPANY
Private Limited Company
A private limited company is a type of privately held small business entity. This type of business entity limits
owner liability to their shares, limits the number of shareholders to 200, and restricts shareholders from publicly
trading shares.
COMPANY LAW DEFINES A PRIVATE COMPANY AS
ONE WHICH:
 has a minimum Authorised share capital of Rs. 1 Lakh or such higher capital as may
be prescribed and
 by its Articles of Association restricts the right of transfer of its share
 limits the number of its members to 200 which will not include-
 members who are employees of the company and
 members who are ex-employees of the company and were members while in
such employment and who have continued to be members after ceasing to be
employees
 prohibits any invitation to the public to subscribe for any shares or debentures of the
company and
 prohibits any invitation or acceptance of deposits from persons other than its
members, directors or their relatives.
In simple words private limited company is a company whose ownership is private usually
by family members, friends and relatives.
ADVANTAGES:
1. YOUR RISK IN THE BUSINESS MINIMIZES:
If the company experience financial distress because of normal business activity, the personal assests
of shareholders will not be at rish of being seized by creditors because of limited liability of
shareholders.
2. YOUR TAX BURDEN REDUCES:
There are many allowances and tax- deductible costs that can be offset against the profits of a
company and the tax would be paid after deducting many costs incurred by you. In addition to that the
current level of Corporation Tax is lower than income tax rates.
3. YOUR SOCIAL APPEAL AND REPUTATION ENHANCES:
With the formation of company, you are declaring to the people that you are serious about the business
and its continuity. Banks easily provide loans against the security of the company's assets. The
greatest advantage is that you can build right team of people. Quality workforce is not hesitant to be
part of the company, because of their sense of security.
4. SCOPE OF EXPANSION IS HIGHER:
Scope for expanding the business becomes high, as the authorized capital can be increased over
1,00,000/- INR, which multiplies the borrowing capacity of the organization and also secures the
deposits and loans from Banks and financial institutions as ‘big projects require big investments’.

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MINIMUM REQUIREMENT:
 Two promoters (Shareholders)
 Two directors ( The directors & Promoters are the same person)
 Authorized capital of Rs.1,00,000
 DIN (Director Identification Number) for all the directors
 DSC (Digital Signature Certificate) for all the directors
INCORPORATION PROCESS:
 Getting DSC
 Getting DIN
 Name Search and application for Name Availability.
 Drafting of Bye Laws (MOA & AOA)
 Filing of various form.
GETTING DSC
The Information Technology Act, 2000 provides for use of Digital Signatures on the documents submitted in
electronic form in order to ensure the security and authenticity of the documents filed electronically. This is the
only secure and authentic way that a document can be submitted electronically. As such, all filings done by the
companies under MCA21 e-Governance program are required to be filed with the use of Digital Signatures by
the person authorized to sign the documents.
Class of DSC:-
The Ministry of Corporate Affairs has stipulated a Class-II or above category signing certificate for e-filings
under MCA21. A person who already has the specified DSC for any other application can use the same for
filings under MCA21 and is not required to obtain a fresh DSC.
Required documents for getting DSC:-
 Specified Form filled as per given guidelines
 ID proof of the applicant (Copy of the PAN card should be attested by the Gazetted officer/Bank
manager/Post master).
 Address proof (Passport/ Aadhar card/Driving License/Voter Id/ latest Utility Bill like Electricity bill,
Telephone bill, Water bill, Gas bill, etc, Property Tax receipt). This needs to be attested by a Gazetted
officer/ Bank manager/ Post master.
 Passport size photo(3.5 cm X 2.5 cm)
 Valid Email Id and Mobile No.
GETTING DIN:
The concept of a Director Identification Number (DIN) has been introduced for the first time with the insertion of
Sections 266A to 266G of Companies (Amendment) Act, 2006. As such, all the existing and intending directors
have to obtain DIN within the prescribed time-frame as notified.
DIN is a unique identification number allotted to an individual who is an existing director of the company or
intends to be appointed as director of a company. DIN is an 8 digit number. For example: 02165789.This is
allotted by Central Government (office of regional director), Ministry of Corporate Affairs. A private company
must have at least 2 directors.

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REQUIRED DOCUMENTS:
 Self attested copy of the PAN Card, the signature must be same as in PAN
 Self attested identity proof of the proposed directors (Voter ID Card/ Valid Driving License/ Valid
Passport/ Aadhar Card etc).
 Self attested Address proof of the proposed directors (Latest Bank Statement within 2months Showing
current transactions/ Latest Telephone or Mobile Bill/ Latest Electricity Bill etc).
 Passport size color & clear photograph (3.5 cm X 2.5 cm)
 An specified Affidavit by the individual (Declaration by the individual and self attested)
 Educational Qualification
 Current Occupation
 Valid Email Id and Mobile No.
 Signature should be same as in PAN card.
NAME SEARCH AND APPLICATION FOR NAME AVAILABILITY:
Next step in the formation of a company is the approval of the name by the Registrar of Companies (ROC) in
the State/ Union Territory in which the company will maintain its Registered Office. This approval is provided
subject to certain conditions: for instance,
 There should not be an existing company by the same name.
 The first word contain a noun and the second word must relate to the main object of the proposed
company.
 The last words in the name are required to be “Private Limited."
 The application should mention at least two suitable names to maximum 6 names of the proposed
company, in order of preference.
Once company name is approved, it is valid for a period of sixty days from the date of application, within which
time Memorandum of Association (MOA) and Articles of Association (AOA) together with miscellaneous
documents should be filed. If one is unable to do so, an application may be made for renewal of name by
paying additional fees.
THE FOLLOWING INFORMATION IS REQUIRED FOR SEEKING
NAME APPROVAL:-
 Proposed name of the company and Alternative names (2 to 6 names)
 Names of the proposed first promoter/ director – minimum 2
 Authorized Share Capital – minimum INR 100000
 Main objects of the company in brief. (In 200 alphabetic words)
 Address of Registered office of the proposed company
 Address of the nearest police station of the proposed registered address of the company.
 NOC if the promoter is carrying on any Partnership firm, sole proprietary or unregistered entity in the
name as applied.
 NOC from the person if the proposed name(s) contain(s) name of any person other than promoter(s) or
their close blood relatives.
 If the proposed name(s) include(s) the name of relatives then the proof of relationship is also required.
DRAFTING OF BYE LAWS (MOA & AOA)

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The Memorandum of Association is a document that sets out the constitution of the company. It contains,
amongst others, the main objectives, incidental or ancillary objectives for the attainment of the main objectives
and the scope of activity of the company and also describes the relationship of the company with the outside
world.
The Articles of Association contain the rules and regulations of the company for the management of its internal
affairs. While the Memorandum specifies the objectives and purposes for which the Company has been
formed, the Articles lay down the rules and regulations for achieving those objectives and purposes. It also
states the authorized share capital of the proposed company and the names of its first / permanent directors.
INCORPORATION PROCESS:
1. After getting the name approval, the MOA/ AOA have to be drafted.
2. Get the subscription sheet of MOA and AOA signed by the subscriber/promoter in his own handwriting
with the following details as per the given order:-
 The name of the subscriber
 Father’s name of the subscriber
 Address of the Subscriber
 Occupation of the subscriber
The subscription sheets of MOA must be mentioned the number of shares subscribed by the promoters in
numbers as well as words and the passport size photograph of the subscribers must be affixed. The
subscription sheets of MOA/AOA must be witnessed by at least one person.
3. FORM INC 7
The following information/documents required in INC 7:-
 Finalized MOA/ AOA containing subscription sheets
 Affidavit for non acceptance of public deposit from all the promoters/ directors
 PAN card, address proof, identity proof of all the promoters
 INC 8,9 &10 in specified format
 DIR 2 consent of director;
 duly digitally signed by promoter/ director
4. FORM INC 22
This is a form to be filed by the company informing the ROC the address of registered office of the proposed
company duly digitally signed by one of the director along with a professional.
The following information/documents required in Form INC 22:-
 If property is owned by the proposed director, then;
 Registered proof in the name of the director like latest Electricity Bill/Telephone bill/Gas bill
 NOC from the proposed director to use the premises
 If the property is owned by other than proposed director, then;
 Rent agreement between the land lord and proposed company through its proposed director
 Registered address proof in the name of the landlord like latest Electricity Bill/ Telephone bill/ Gas bill.
 NOC from the landlord to use the premises
 Rent Receipt
 The name and address of the nearest police station of the premises where the company is going to be
incorporated.
5. FORM DIR 12

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This form states the fact of appointment of the proposed directors on the board of directors from the date of
incorporation of the proposed company and that it is digitally signed by one of the proposed directors along
with the professional.
The following information/documents required in Form DIR 12:-
 Appointment Letter
 INC 9 and DIR 2 in specified format: Detail of appointment of board of directors.
 Digitally signed by one of the proposed directors along with the professional
6. After obtaining the details of Form INC7, INC22 and DIR12, these forms are uploaded on the MCA
portal with the respective fees along with the stamp duty of the respective state.
7. After this, incorporation certificate having CIN (corporate identification number) like U 72900 RJ 2012
PTC 039206 will be obtained.
8. The certificate of incorporation will be required while opening the current bank account in company
name.
DOCUMENTS REQUIRED:
1. Form INC
1
Availability of Name for a New Company.
2. Form INC
7
Application or declaration for incorporation of a company along with MOA &
AOA, PAN card, Identity proof, address proof and affidavit for non
acceptance of deposit by all the promoters/directors.
3. Form INC
22
This is a form to be filed by one of the directors of the company informing the
ROC the address of registered office of the proposed company.
4. Form DIR
2
This is a consent obtained from all the proposed directors of the proposed
company to act as directors of the proposed company.
5. Form DIR
12
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. Form INC
10
Form for verification of signature of subscribers.
7. Form INC
9
Declaration by the subscribers for not been convicted of any offence in
connection with the promotion, formation or management of any company
during the preceding five years.
8. Form INC
8
Declaration by the professional engaged in the incorporation process.
DOCUMENTS REQUIRED AFTER INCORPORATION
Form Name Event for which form is
required to submit
Due date of filing Whether fixed rate of
additional fee is
required as per Table
1b
FORM INC22 Registered office Change
Notice
Within 30 Days of event Y
FORM DIR12 Changes In Director /Manager Within 30 Days of event Y
FORM SH7 Increase in Share Capital
/Members
Within 30 days of event Y
FORM MGT14 Registration of Resolution /
Agreement
SCHEDULE V Annual Return Within 60 Days of AGM Y

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SCHEDULE VI Balance Sheet and Profit & Loss
Account
Within 30 Days of AGM Y
FORM CHG1 Creation / Modification of
Charges
FORM CHG4 Particulars for satisfaction of
charge
Within 30 Days of event N
FORM INC28 Notice of Court / CLB Order NA
FORM PAS3 Return of Allotment Within 30 days of event Y
FORM INC27 Conversion of Public to Private
application vice versa
Within 30 days of
event
N
FORM CHG9 Particulars of Series of
Debentures
Within 30 days from
event
Y
FORM INC18 Application to Regional Director
for conversion of section 8
company into any other kind of
company
FORM INC20 Intimation to Registrar of
revocation or surrender of
license issued under section 8
Within 30 days of event
FORM INC23 Application to Regional director
for approval to shift the
registered office from one state
to another state or from
jurisdiction of one registrar to
another within the state
FORM INC 24 Application for approval of
Central Government for change
of name
FORM INC-28 Notice of order of the Court or
other authority
FORM PAS-3 Return of allotment
FORM SH-8 letter of offer
FORM SH-11 Return in respect of buy back of
securities
FORM CHG-6 Notice of appointment or
cessation of receiver or manager
FORM CHG-9 Application for registration of
creation or modification of
charge for debentures or
rectification of particulars filed in
respect of creation or
modification of charge for
debentures
FORM MGT-6 Form of return to be filed with
the Registrar
Within 30 days of
event
Y
FORM MGT-14 Filing of Resolutions and
agreements to the Registrar
under section 117
FORM DIR-6 Intimation of change in
particulars of Director to be
given to the Central
Government
FORM DIR-11 Notice of resignation of a Within 30 days of event Y

9461620007
director to the Registrar
FORM MR-1 Return of appointment of
managing director or whole time
director or manager
FORM MR-2 Form of application to the
Central Government for approval
of appointment or reappointment
and remuneration or increase in
remuneration or waiver for
excess or
over payment to managing
director or whole time director or
manager and omission or
remuneration to directors
FORM URC-1 Application by a company for
registration under section 366
FORM FC-1 Information to be filed by foreign
company
FORM FC-2 Return of alteration in the
documents filed for registration
by foreign company
FORM FC-3 List of all principal places of
business in India established by
foreign company
FORM FC -4 Annual Return Within 30 days of event Y
FORM GNL-1 Form for filing an application
with Registrar of Companies
FORM GNL-2 Form for submission of
documents with Registrar of
Companies
FORM GNL-3 Particulars of person(s) or
director(s) or charged or
specified for the purpose of
section 2(60)
FORM RD-1 Form for filing application to
Regional Director
FORM RD-2 Form for filing petitions to
Central Government (Regional
Director)
FORM CG-1 Form for filing application or
documents with Central
Government

9461620007
PUBLISHER INFORMATION
COMPANY NAME: STARTUPSOLICITORS
PUBLISHED BY: SHRISHTI AGARWAL
CONTACT US
 MAIL : INFO@STARTUPSOLICITORS.COM
 NO: 9461620007
LOCATION:
 JAIPUR OFFICE: 47, SMS COLONY, SHIPRA PATH,
MANSAROVAR, 302020, INDIA
 GURGAON OFFICE: KHANNA AND ASSOCIATES, CHAMBERS,
GURGAON OFFICE, INDIA
 MUMBAI OFFICE: KHANNA AND ASSOCIATES, CHAMBERS,
MUMBAI OFFICE, INDIA
 DEHRADUN OFFICE: KHANNA AND ASSOCIATES, CHAMBERS,
DEHRADUN OFFICE, INDIA
 DUBAI OFFICE: KHANNA AND ASSOCIATES, CHAMBERS, DUBAI
OFFICE, UAE
 NEW YORK OFFICE: KHANNA AND ASSOCIATES,
CHAMBERS,NEW YORK OFFICE, USA (+1)8015120200
 LONDON OFFICE: KHANNA AND ASSOCIATES, CHAMBERS,
LONDON OFFICE, UK (+1)8015120200

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