Incorporation of Private Limited Company – Digitalmunition




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Published on March 10th, 2020 📆 | 6243 Views ⚑

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Incorporation of Private Limited Company

Features of Private Limited Company:

  • Separate Legal Existence
  • Annual General Meeting – Only a private limited company can dispense with obligations to hold an annual general meeting
  • Share Capital Limits – No minimum or maximum share capital requirements.
  • Minimum number of Members: 2; Maximum number of Members: 200
  • Minimum Capital: Nil {omitted by Companies (Amendment) Act, 2015}
  • Limited Liability
  • Minimum number of Directors: 2
  • Foreign investment allowed (subject to material Sectoral Cap according to FDI rules)
  • Continuity of presence: business not influenced by the status of the proprietor.

Procedure for Incorporation of private Limited Company

  1. Obtain Digital Signature Certificate (DSC) for the proposed Director not having DSC;
  2. Obtain Directors Identification Number (DIN) for proposed Director not applying so as to have DIN to Ministry of Corporate Affairs (MCA) in Form DIR-3;

Requirement for Form DIR-3:

  • Identity Proof: Copy of PAN Card (Income Tax Permanent Account Number (PAN) is mandatory if there should be an occurrence of Indian National and in such cases applicant details should be as per Income tax PAN)
  • Address Proof: Copy of Passport or Election / Voter ID or Ration Card or Driving permit (location having pin code) or Electricity / phone (Utilities) bill or AADHAR Card. This ought to be "Name of Applicant" just and it ought not be more established than 2 months from the date of documenting of the e-from.
  • Photograph (latest Passport Size in JPG format)
  • * Current Occupation
  • * Email Address of the Applicant
  • * Mobile / Cell Number
  • * Educational qualification
  • * Verification to be signed by the Applicant.

Apply for Reservation of Name in Form INC-1 along with the prescribed fees.

After getting name approval from MCA you need to apply for certificate of incorporation. There are 3 forms which are required to be uploaded: –

  1. Form INC – 7
  2. Form INC – 22
  3. Form DIR – 12

Requirement for Form INC-7, Form INC-22, Form DIR-12:

  • Memorandum of Association (MOA) & Articles of Association (AOA).
  • INC-8 duly notarized
  • INC-9 duly notarized
  • INC-10 appropriately confirmed by Banker or legally approved
  • Affidavit for non – acknowledgment of deposit
  • Full address of Police Station under whose jurisdiction the registered office is located.
  • Utility Bill (not older than two months) of the registered office premise
  • Conveyance / Lease deed / Rent Agreement
  • NOC from the proprietor of the premise, if tackled lease
  • Form DIR-2
  • Directors Directorship points of interest in different Companies / LLPs, if any.

  1. Form INC-7: Form INC-7 for Application for incorporation of a company.
  2. Form INC-22: Notice of situation or change of situation of registered office based on the option chosen in Form INC-7. Form INC-22 is to be filed within 30 days from the date of Incorporation of Pvt Ltd company
  3. Form DIR-12: Particulars of appointment of directors and the key managerial personnel and the changes among them.

On investigation and examination of the previously stated forms, the concerned Registrar of Companies (ROC) might issue Certificate of Incorporation of Company along with the Corporate Identification Number (CIN).

Taxation of Companies

Direct Tax

Corporate Tax Rates

Particulars -> Domestic Company

Rate of Tax -> 30% of the Total Income

Surcharge -> 5% of Income Tax, if taxable income exceeds Rs. 1 crore upto Rs. 10 crore

-> 10% of Income Tax, if taxable income exceeds Rs. 10 crore

Education Cess -> 2%

SHEC —> 1%

Minimum Alternate Tax (MAT) @ 18.5% on Book Profits in addition to surcharge and cess, as appropriate.

Indirect TAX:

Service tax:

Service Tax registration is an element of gross turnover. Once the turnover of the assessee crosses an edge threshold point of Rs 9 lacs, the service provider is obliged to get itself registered under the law, and mandatorily needed to charge service tax on services provided once the turnover crosses rs 10 lacs.

VAT:

VAT (Value Added Tax) registration is necessary for merchants having turnover exceeding Rs 5 lacs. On registration, such merchant is assigned a novel 11 digit Taxpayer's Identification Number (TIN).

CST:

CST (Central Sales Tax) registration is not reliant on measure of turnover. Basically, registration of merchant gets to be necessary once he influences a between state deal.

by Sowmiya Narayanan

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