A private limited company is a type of business entity that is privately held by a small group of individuals or companies. Here’s an overview of what a private limited company entails:
Characteristics of a Private Limited Company
Process of Incorporating a Private Limited Company
Advantages of a Private Limited Company
Disadvantages of a Private Limited Company
At Ujjwal Gupta & Co
We, at Ujjwal Gupta & Co, are dedicated to delivering personalized, high-quality solutions tailored to meet your financial and business needs. With our team of professionals and a client-first approach, we ensure that every challenge is met with expert guidance and strategic insight.
We are dedicated to ensuring your business’s success by providing best service practice available in the industry and that too at a cost effective pricing. Our team of experts is excited to work with you and provide the support you need to thrive in the Indian business landscape.
Our only motive is to create Value for Our Clients and accordingly, have a Client Value System at our Office.
So, let us help you navigate the complexities of finance and compliance, empowering you to focus on what matters most — growing your business. Get in touch today, and take the first step towards financial peace of mind.
A Private Limited Company (Pvt. Ltd.) is a type of company privately owned, where the shareholders’ liability is limited to their shares. It cannot publicly trade shares and is ideal for small and medium-sized businesses. It is regulated by the Companies Act, 2013.
The essential requirements for forming a Private Limited Company are:
- Minimum of two directors and two shareholders (can be the same individuals).
- Director Identification Number (DIN) for all directors.
- A Digital Signature Certificate (DSC) for filing online documents.
- The company must have a registered office in India.
- The company must have a minimum paid-up capital of ₹1 lakh (no longer a mandatory requirement under recent amendments).
The following documents are required for registration:
- PAN card of all directors and shareholders.
- Address proof of directors and shareholders (passport, Aadhaar, voter ID, etc.).
- Proof of the registered office address (utility bills, rent agreement, NOC from the landlord).
- Digital Signature Certificate (DSC) for at least one director.
- Declaration from the directors and shareholders.
The steps for registration are:
- Obtain DSC and DIN for the directors.
- Reserve the company’s name through the RUN (Reserve Unique Name) service on the MCA (Ministry of Corporate Affairs) portal.
- Draft and file the Memorandum of Association (MOA) and Articles of Association (AOA).
- Submit incorporation documents via the SPICe+ form (Simplified Proforma for Incorporating a Company Electronically).
- Once approved, receive the Certificate of Incorporation from the Registrar of Companies (RoC).
- A minimum of two shareholders and two directors are required.
- One of the directors must be an Indian resident.
Key benefits include:
- Limited liability: Shareholders’ liability is limited to the unpaid amount on their shares.
- Separate legal entity: The company has its own legal identity, distinct from its shareholders and directors.
- Perpetual succession: The company continues even if the owners or directors change.
- Ease of raising capital: Private Limited Companies can issue shares to private investors, venture capitalists, or private equity firms.
- Professional credibility: Private Limited Companies are generally viewed as more credible than partnerships or sole proprietorships.
- Private Limited Company: Cannot offer shares to the public, has fewer compliance requirements, and is usually smaller with up to 200 shareholders.
- Public Limited Company: Can offer shares to the public and must comply with strict regulations under SEBI and the Companies Act, 2013.
- Private Limited Companies are not listed on stock exchanges, while Public Limited Companies can be publicly traded.
A Private Limited Company must comply with the following tax obligations:
- Corporate tax: A flat rate of 22% (without exemptions) or 30% (with exemptions) applies to domestic companies, depending on their turnover and tax structure.
- Goods and Services Tax (GST): If applicable, the company must register for GST and file returns regularly.
- Tax Deducted at Source (TDS): Must deduct TDS on payments like salaries, professional fees, rent, etc., and file returns.
- Income tax returns (ITR): The company must file its ITR annually, regardless of whether it makes a profit or loss.
Yes, foreign nationals and NRIs can become both directors and shareholders in a Private Limited Company. However, at least one director must be an Indian resident. Foreign investment in certain sectors may require approval from the Foreign Direct Investment (FDI) policy or other regulations.
Private Limited Companies must comply with several annual requirements, including:
- Annual General Meeting (AGM): Must be held within six months of the end of the financial year.
- Filing annual returns and financial statements with the RoC.
- Statutory audit of financial accounts.
- Regular filing of GST returns (if applicable) and Income Tax Returns (ITR).
- Maintenance of statutory registers (register of members, directors, and shareholding).
Why Choose UGC?
Client Centric Approach
Client is the key driver of our service offerings. Our approach to service offerings is based on a client centric and customized approach. Our specialized teams are a mix of technical and industry experience in order to serve clientele for their specific needs.
Team Work
We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, social and ethnic backgrounds. We believe diversification plays a vital role in motivating the team.
Quick Turnaround
We always endeavour for a quick turnaround time to serve our clientele. We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.
Open Communications
We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele. We are committed to ensuring transparency in communication, service offerings and delivery. We provide professional services to our clients.
Client Value System
We value for the Client time and thus, we offer services that are value for money. Quality professional services are provided to our clients, so that they are able to achieve their desired results. We are a quality trademark in the industry and thus, our clients count on us always.
Quality in Delivering Work
Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.
Other Related Services
