ADVANTAGES & BENEFITS
DOCUMENTS REQUIRED FOR PVT LTD COMPANY
WHAT DO YOU GET
QUESTIONS & ANSWERS
Why is the Private Limited Company the best option for start-ups?
In order to execute the idea into a long-term business, choosing the right form of business is important. For start-ups, Private Limited Company is the best option for the following reasons:
- Limited legal compliances
- No minimum capital contribution
- Need only 2 directors and shareholders (both can be the same person)
- Funding can be raised
- Limited liability of the members
What is the limit for Directors in a Private Limited Company?
A minimum of 2 Directors are required for incorporation of Pvt Ltd Company, one of the said Director shall be a resident in India, i.e. should be in India for a period of 182 days or more in the previous financial year. However, a private company can have a maximum of 15 Directors.
Who can become a director in a Private Limited Company?
Any individual or organisation or even an NRI/foreign nationals can become a director in an Indian Private Limited Company. Here are the conditions to become a director in an Indian private company:
- Director must be a natural person
- He must be over the age of 18 years
- He requires a Director Identification Number (DIN)
What are the mandatory compliances for a Private Limited Company?
The common mandatory compliances are:
- Appointment of auditor
- Statutory audit of accounts
- Filing of annual return
- Filing of financial statements
- Holding Annual General Meeting (AGM)
- Prepare directors’ report