You can easily form a private limited company in India. To achieve this you have to follow the important guidelines of the companies’ registration office in India.
Create Private Limited Company India
To start a private limited company in India you need to do the following:
- A Registered Business Name: You need to select a name with the word ‘Limited’ or ‘Ltd’.
- Registered Office: The comp-any must have a registered office. It may or may not be at the same address from where the business is conducted. Mostly the address used for the registered office is that of the accountant or the firm’s solicitor.
- Shareholders: There company must have a minimum of two shareholders usually known as `members’ or `subscribers. A private company can have up to fifty shareholders.
- Share Capital: A stated, nominal share capital divided into shares of fixed amounts must be used to form the company.
- Memorandum of Association: The memorandum is the company’s charter. It informs about the company’s name; the location of its registered office; its share capital; the fact that liability is limited and, and the object for which the company has been formed.
- Articles of Association: The document states the internal regulations of the company. It also throws light on the relationship of the company with its shareholders and between the individual shareholders. Instead of having their own articles, many companies adopt (sometimes with some modifications) articles set out in the Companies Act.
- Certificate of Incorporation: This is the document, issued by the registrar of companies after approving your choice of name and memorandum. Your company legally exists and is ready for business only after it receives the certificate.
- Auditors: Your Company must have its own auditor. The duty of the auditor is to report to the treasurer whether or not the books of the company have been properly kept. His duty is to maintain the balance sheet and profit and loss account presents in compliance with the Companies Act.
- Accounts: Your Company must maintain a set of records, to accurately reflect the financial position at any one time. A newly formed company’s accounting period begins at its incorporation and continues until the next 31st March – unless the company notifies the registrar of companies otherwise. Within the accounting reference period, an audited set of accounts has to be presented before the shareholders and a set delivered to the registrar of companies.
- Registers, etc.: Your Company must also have a register of members and share ledger; a register of directors and secretaries; a register of charges; a register of share transfers; and a register of debenture holders. This will be provided automatically if you buy a running concern.
- Company Seal: It is mandatory for your company to have an engraved seal. This must be impressed on share certificates and has to be used whenever the company has to execute a deed.