To form a Private Limited Company in India is easy although the steps looks little lengthier. The process of formation includes the followings.
A Registered Business Name:- This must be followed by the word ‘Limited' or ‘Ltd".
A Registered Office:- This need not necessarily be the same address as the business is conducted from.
Shareholders:- There must be a minimum of two shareholders (also described as `members' or `subscribers'). A private company can have up to fifty shareholders.
Share Capital:- The company must be formed with a stated, nominal share capital divided into shares of fixed amounts.
Memorandum of Association:- The memorandum is the company's charter. must be signed by at least three shareholders.
Articles of Association:- The document contains the internal regulations of the company, the relationship of the company to its shareholders.
Certificate of Incorporation: This is the document, which the registrar of companies issues once he has approved your choice of name and your memorandum.
Auditors:- Every company must appoint a qualified auditor.
Accounts:- The Companies Act lays down strict rules on accounting. Every company must maintain a set of records, which show the financial position at any one time with reasonable accuracy.
Registers:- In addition to the accounts books, companies are required to have a register of members and share ledger.
Company Seal:- All companies must have an engraved seal.
A Registered Business Name:- This must be followed by the word ‘Limited' or ‘Ltd".
A Registered Office:- This need not necessarily be the same address as the business is conducted from.
Shareholders:- There must be a minimum of two shareholders (also described as `members' or `subscribers'). A private company can have up to fifty shareholders.
Share Capital:- The company must be formed with a stated, nominal share capital divided into shares of fixed amounts.
Memorandum of Association:- The memorandum is the company's charter. must be signed by at least three shareholders.
Articles of Association:- The document contains the internal regulations of the company, the relationship of the company to its shareholders.
Certificate of Incorporation: This is the document, which the registrar of companies issues once he has approved your choice of name and your memorandum.
Auditors:- Every company must appoint a qualified auditor.
Accounts:- The Companies Act lays down strict rules on accounting. Every company must maintain a set of records, which show the financial position at any one time with reasonable accuracy.
Registers:- In addition to the accounts books, companies are required to have a register of members and share ledger.
Company Seal:- All companies must have an engraved seal.
