Incorporation of Private Limited Company under Companies Act 2013

Features of Private Limited Company

Separate Legal Status
Capacity to borrow
Easy Transfer of shares
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 permitted (subject to applicable Sectoral Cap as per FDI guidelines)
Capacity to sue or to be sued
Procedure for Incorporation of Company

Obtain Digital Signature Certificate (DSC) for the proposed Director / Promoter not having DSC;
Obtain Directors Identification Number (DIN) for proposed Director / Promoter not having DIN by applying to Ministry of Corporate Affairs (MCA) in Form DIR-3;
Requirements for Form DIR-3

Passport Size Photograph
Identity Proof: PAN (mandatory) duly attested by Practicing Chartered Accountant / Practicing Company Secretary / Practicing Cost Accountant
Address Proof: Passport / Aadhar / Telephone Bill / Electric Bill (not older than 2 Months) duly attested by Practicing Chartered Accountant / Practicing Company Secretary / Practicing Cost Accountant
Educational Qualification
Email Id and Mobile Number
Apply for Reservation of Name in Form INC-1 along with the prescribed fees
On approval of Name of the proposed Company is received, the following Forms need to be filed;
Form INC-7
Form INC-22
Form DIR-12
On scrutiny and examination of the aforesaid forms, the concerned Registrar of Companies (ROC) shall issue Certificate of Incorporation of Company along with Corporate Identification Number (CIN).
Note: Certificate of Commencement of business is not required to be filed in Form INC-21 as the same has been omitted by the Companies (Amendment) Act, 2015.

Requirements for Form INC-7, Form INC-22, Form DIR-12

Memorandum of Association & Articles of Association (MOA & AOA) along with subscribers sheet
INC-8 duly notarized
INC-9 duly notarized
INC-10 duly verified by Banker or notarized
Affidavit for non - acceptance of deposit
Full address of Police Station under whose jurisdiction the registered office is situated
Utility Bill (not older than two months) of the registered office premise
Conveyance/Lease deed/Rent Agreement
NOC from the owner of the premise, if taken on lease
Form DIR-2
Directors Directorship details in other Companies / LLPs, if any.
Note: For Incorporation fees please refer Table of Fees Rules and Stamp duty will be levied as per prevailing stamp rate of the concerned State.

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 ₹ 1 crore upto ₹ 10 crore
10% of Income Tax, if taxable income exceeds ₹ 10 crore
Education Cess

2%

S.H.E.C.

1%

Minimum Alternate Tax (MAT) @ 18.5% on Book Profits plus surcharge and cess, as applicable.

Due date for filing of returns: September 30 of the relevant Assessment year

Note: Maximum of MAT or Income Tax should be considered.

Indirect Tax

Service Tax

Service Tax Registration is mandatory if the annual turnover exceed ₹ 9 Lakhs Service Tax is charged at 14% (notified) plus 2% Swachh Bharat Cess (not yet notified) as per Finance Act, 2015.

VAT

VAT is levied on goods sold by the Company. The criteria for registration and charging VAT varies from State to State based on the rules and regulations formulated by the concerned state.

Mandatory Compliances

Quoting of CIN on all letterheads, invoices, notices etc.
Printing of share certificate and MOA & AOA
Opening Bank Accounts
Maintaining Books of Accounts
Appointment of First Statutory Auditor
Board Meeting Compliances as per Companies Act, 2013 and rules made thereunder
Maintaining Minutes Book
Annual General Meeting every year
Annual Filings with the MCA
Appointment of Company Secretary in whole-time employment if paid up capital exceeds ₹ 5 Crore
Maintaining Statutory Registers

Keeping Books of Accounts and Statutory Registers at the Registered Office of the Company