private limited company modified)

8/2/2019 Private Limited Company Modified)

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Private Limited

Company


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WHAT IS A COMPANY?

Company is a voluntary association of

persons formed for the purpose of doing

business having a distinct name and limitedliability.

Capable of rights and duties of its own and

able with the potential of perpetualsuccession.


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CLASSIFICATION OF

COMPANIES


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Companies under the Companies Act, 1956

may be classified on various grounds as

under:


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PVT LTD CO.


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A private limited company is a voluntary

association of not less than two and not

more than five

Its liability is limited, the transfer of shares

is limited to its members and who is not

allowed to invite the general public tosubscribe to its shares or debentures.


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FEATURES


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It is relatively less cumbersome to organize

and operate it, as it has been exempted from

many regulations and restrictions to which apublic limited company is subjected to, like:


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it need not file a prospectus with the Registrar.

it need not obtain the Certificate forCommencement of business.

it need not hold the statutory general meeting norneed to file the statutory report.

restrictions placed on the directors of the publiclimited company do not apply to its directors.


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The liability of its members is limited.

The shares allotted to it's members are also notfreely transferable between them. Thesecompanies are not allowed to invite public tosubscribe to its shares and debentures.

It enjoys continuity of existence i.e. it continues toexist even if all its members die or desert it.


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Procedure

for forming aPVT LTD

Company


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1. Selection of type of the company.

The promoters can select type of the company asthey wish to form themselves into viz. private

company, public company, non-profit makingcompany, etc.

2. Selection of name for the proposed company.

Six names are required to be selected in order of

preference after taking notes of numerousprovisions, clarifications, circulars and rulesmade by the Ministry of Corporate Affairs


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3. Apply for Directors Identification Number and DigitalSignatures.

New section 266A has been inserted by the Companies(Amendment) Act, 2006 which provides that everyindividual, intending to be appointed as director of a

company shall make an application for allotment ofDirector Identification Number (DIN) to the CentralGovernment in the prescribed DIN Form.

4. Drafting of Memorandum and Articles of Association.

Drafting of the MOA and AOA is generally a stepsubsequent to the availability of name made by theRegistrar. It should be noted that the main objects shouldmatch with the objects shown in e-Form. These twodocuments are basically the charter and internal rules andregulations of the companies.


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5. Stamping, digitally signing and e-filing of variousdocuments with the Registrar

Every documents prescribed under the Companies Act,

1956 is required to be filed with the digital signature ofthe managing director or director or manager or secretaryof the Company, , It is compulsorily required to obtaindigital signatures of at least one director to sign the e-Form 1A and other documents


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6. Payment of Fees.

The confirmation of the name made available bythe Registrar shall be valid for a period of sixmonths. In case, if the promoters fail to submitall the required documents for incorporationwithin that period, then they are required tosubmit another application after payment ofrequisite fees.

7. Obtainining Certificate of Incorporation.

Promoters need to file the documents with theRegistrar for incorporation of the companyalong with the adequate filing fees as applicablefor registration of the company


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8. Filing of Prospectus/Statement in lieu ofProspectus and e-Form 19/20 (in case of publiccompanies) - Certificate of commencement ofbusiness.

9. Obtaining Certificate of Commencement ofbusiness (in case of public limited companies).


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Time for Video..!!


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Thank you

Presented by: TEAM 5Bharat (5)

Darshan (10)

Mustak (21)

Rohan (31)

Sanket (34)

private limited company modified)

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