FAQs on Private Limited Company Registration

Q1) What does a Private Limited Company mean?

Ans: A Private Limited Company is a business entity privately held by shareholders with limited liability.

Q2)Which is a better option: a Limited Liability Partnership or a Private Limited Company?

Ans: A Private Limited Company offers better funding options, while an LLP has fewer compliance requirements.

Q3)What is the minimum capital and turnover required to establish a Private Limited Company in India?

Ans: There is no minimum capital, but a Private Limited Company must have a reasonable turnover based on business needs.

Q4)What is the tax liability of a Private Limited Company?

Ans: Private Limited Companies pay 25% corporate tax (plus surcharge & cess) on their profits.

Q5)What are the basic requirements for registering a Private Limited Company?

Ans: At least two directors, two shareholders, a registered office, and proper documents are needed.

Q6)What is the process for closing a Private Limited Company?

Ans: A Private Limited Company can be closed through voluntary winding-up or strike-off with ROC approval.

Q7)What are the ROC compliance requirements for a Private Limited Company?

Ans: ROC compliance includes filing annual returns, financial statements, and tax reports.

Q8)Which documents are needed to appoint a director in a Private Limited Company?

Ans: PAN, Aadhaar, consent letter, DIN application, and board resolution are needed to add a director.

Q9)Is it compulsory to include "Private Limited" after a company’s name, such as XYZ Pvt. Ltd.?

Ans: Yes, a Private Limited Company must include "Pvt. Ltd" or "Private Limited" in its name.

Q10)According to Indian law, what is the maximum number of directors allowed in a Private Limited Company?

Ans: A Private Limited Company can have a maximum of 15 directors as per Indian law.

Conclusion

If you’re planning to register, consult experts for guidance and legal compliance. A well-registered company paves the way for growth and success.