FAQ's About incorporating a Private Limited Company in India

 

Directors for an Indian company, both Indian and foreigners, must register and get a unique identification number under the new requirements of law. It is called Director Identification Number i.e. DIN. Similarly in case of Limited Liability Partnership, a unique identification is allotted to partners known as Designated Partners Identification Number i.e. DPIN. PAN is a mandatory requirement for acquiring DIN or DPIN.

The “limited” means that the liability of the owners of the company is limited. Shareholder liability for the losses of the company is limited to their share contribution only. This is what makes it a separate legal entity from its shareholders. The business can be sued on its own and not involve its shareholders. The company does not belong to any person since one person can own only a part of it.

A Private Company shall hold a minimum number of four Meetings of its Board of Directors every year in such a manner that maximum gap between two Meetings should not be more than 120 (One hundred Twenty) days. Company should hold at least 1 (one) Board Meeting every quarter of calendar year. A private company is required to hold its first annual general meeting within nine months from the closure of financial year and subsequent AGM within six months of the closure of the financial year.

Companies are required to file Balance Sheet, Profit & Loss Account along with Directors Report & Auditors Report and Annual Return, separately, with the Registrar of Companies, in each calendar year with prescribed forms. All these forms are required to be certified by a practicing Chartered Accountant or a practicing Company Secretary.

Companies are required to get the Balance Sheet & Profit & Loss account audited by the Statutory Auditor of the Company. Only a chartered accountant in practice can be appointed as the statutory auditor.

A Private Company shall hold a minimum number of four Meetings of its Board of Directors every year in such a manner that maximum gap between two Meetings should not be more than 120 (One hundred Twenty) days. Company should hold at least 1 (one) Board Meeting every quarter of calendar year. A private company is required to hold its first annual general meeting within nine months from the closure of financial year and subsequent AGM within six months of the closure of the financial year.