Your online companion for company, tax and legal matters.

WWW.LEGALRAASTA.COMPRIVATE LIMITED COMPANY AS PER COMPANIES ACT 2013Hi, In this video the Legalraasta team will teach our all about the Private Limited Company As Per Companies Act 2013 its definition, minimum requirement and advantages.

1

COMPANIES ACT 2013Private Limited CompanyA quick perusal of the Companies Bill 2013 shows that many exemptions given toPrivate limited companies under Companies Act are withdrawn. The following provisions are applicable to Private limited companies under the new Companies Bill 2013.

A quick perusal of the Companies Bill 2013 shows that many exemptions given toPrivate limited companies under Companies Act are withdrawn. The following provisions are applicable to Private limited companies under the new Companies Bill 2013.

COMPANIES ACT 2013Maximum Number of membersThere is no change in the minimum number of member which is 2. The maximum number the members in a private limited company are increased from 50 members to 200 members. (Clause 2 sub section (68)).Financial Year for the Balance SheetFinancial year of the balance sheet will be 31st march for all the companies.For any relaxation approval fromNCLTis required. (Clause 2 sub section (41))Postal ballot for passing the ResolutionsTill now postal ballot is applicable only for listed companies. Postal ballot is applicable to private limited companies also for certain transactions after the amendment prescribed by the central government by notification. (Clause 110

ANNUAL RETURNSCertificationfor Annual ReturnAnnual Returnmust be certified by a Practicing company secretary and requirement of compliance certificate by practicing company secretary is dispensed with. The annual return should contain particulars like:(a) The extract of the annual return as provided under sub-section (3) of sec 92.(b) Number of meetings of the Board.(c) Directors Responsibility Statement;(d) A statement on declaration given by independent directors under sub-section.Number of days of Notice of General MeetingsFor private limited company as per the existing Companies Act is even seven days notice is sufficient. This exemption is withdrawn.As per the New Provisions 21 clear days notice has to be given to the shareholders and the notice can be given by electronic mode also. However the general meeting may be convened by giving shorter notice if consent is given in writing or electronic mode by not less than ninety nine per cent of the members entitled to vote at such meeting. (Clause 101).

CORPORATE SOCIAL RESPONSIBILITYCorporate Social ResponsibilityEvery company having net worth of rupees five hundred crore or more, turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute aCorporate Social Responsibility (CSR) Committee of Board consisting of three or more directors, out of which at least one director shall be an independent director and 2 per cent of the average net profits of the immediately preceding three financial years should be spent for CSR (Clause 135).Appointment of AuditorsAn auditor will be appointed in the first annual general meeting fora five-year term. Thereafter, the auditor will be changed as per the members decisions.Secondly, an audit firm cannot be re-appointed for more than two five-year terms. (i.e. 10 years) For re-appointment purposes for the individual auditor or audit firm, there has to be a gap of five years. Moreover, for appointment or re-appointment purposes, there should be no common partners between the new firm and old auditfirm. Another interesting clause is that members can resolve to ask the audit firm to rotate the audit partner and team every year.

DUTIES OF DIRECTORSAppointment of Internal AuditorSuch class or classes of companies as may be prescribed shall be required to appoint aninternal auditor, who shall either be a Chartered Accountant or a Cost Accountant or such other professionals as may be decided by the Board conduct internal audit of the functions and activities of the company.(Clause 138).Duties of DirectorsA director of a company shall act in good faith in order to promote the object of the company.A director of a company shall exercise his duties with due care, skill and diligence.A Director of a company shall not assign his office and any assignments so made shall be void.If a director of the company contravenes the provisions of this section such director shall be punishable with fine which shall not be less than Rs.1, 00,000/- but which may extend to Rs.5, 00,000/- (Clause 166).

LOANS AND INVESTMENTClassification of Private Limited CompanyClassification of Private Limited CompanyLoan and InvestmentThe exemption given to private limited company under Section 372A regarding loan and investment is withdrawn. Existing limit of 60% Paid up capital and free reserves or 100% of free reserves applicable to both private limited and public limited companies.(Exemption to private limited Company for loan and investment under section372A is removed now) (Clause 186).Loan to DirectorsThe exemption given to the Private Limited Company under section 295 regarding loan given to director of a private limited of company is withdrawn. Loan should not be given to directors of any company including private limited company or to any private company in which a director is a director or member (Clause 185).

MANAGING DIRECTORBoard and Annual General Meeting minutesHereafter the companies shall follow the Secretarial Standards while making the minutes of Board and General Meeting. (Clause 118 (10))Books of AccountsThe Books of Accounts may be kept in electronic form also. (Clause 128)Managing DirectorThe exemption given to private limited company under section 269 for appointment of Managing Director is withdrawn. Provision relating to the appointment of Managing Director is also applicable to the private limited companies (Clause 196).

About LegalRaasta and TeamAbout usWe are committed to helping you grow your business and add value through our expertise. We aim to deliver a hassle-free experience so that you can focus on your core business.

Our mission is to offer affordable, quick and automated professional services to clients. Through technology, we bring numerous government/ legal forms at one place and have simplified them to be fully understood by common man. Legalraasta.com is a one destination for your legal matters relating to:Forming any type of business entity (e.g., Pvt. Ltd Co, LLP etc)Filing individual and company returnHelping on company compliances such as ROC filings & minutesProtecting work through trademark & copyrightOur teamLegalRaasta.com has been founded by a team of Chartered Accountants and professional advisors. We currently have a network of 100+ professionals including experienced Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers and Bankers.Pulkit Jain, founder of Legalraasta, has over 5+years experience in CA and Legal domain. He has worked with the top CA firms in India and has served large corporate and MNCs

Legalraasta.com is Indias top destination for legal & company matters . We can help you in Forming any type of business entity (Example Private. Limited Company, LLP), filing individual and company return, Helping companies for their compliances such as ROC filings & minutes, protecting work through trademark & copyright.

9

Why Choose UsCost effectiveBusinesses are always under intense time and cost pressures. With our great packages 40% savings are ensured compared to typical CA/ LawyerExpertiseBy teaming up with us , you will have an access to network of 100+ experts. You can gain the peace of mind in knowing that your accounting tasks are done properly by qualified, experienced and knowledgeable professionals in the field.Easy Online ProcessYou dont have to deal with the typical headaches involved with face to face meeting and visiting government offices. Our process is 100% online. Fill out simple forms and you are done!!Trusted We are a trustworthy partner which has been serving startups & companies for past several years. Our growth numbers stand as a testimony: 200+ clients100+ services30+ testimonials

Partner/ Affiliations

We are an e-filing intermediary and have been facilitating filing of hundreds of e-returns. We are also registered with e-mudhra for issue of Pan cards. There are multiple other associations with CA & legal firms. Our site has been secured by SSL to protect your personal & payment details

We are a trusted partner with multiple top level expertise and affiliation, and yet cost effective.

Contact UsCorporate officeB-186, Lok Vihar, Pitampura, Delhi 110034 IndiaOur team always endevour to serve you best. Feel free to reach out to us at:www.legalraasta.comMail: contact@legalraasta.com, M: +919999379929

So log on now at legalraasta.com to Private Limited Company As Per Companies Act 2013 or mail us at contact@legalraasta.com.