A Private Limited Company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the amount of shares respectively held by them.Shares of Private Limited Company cannot be publically traded.
A Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. It’s stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market. A Public Limited Company is strictly regulated and is required to publish its true financial health to its shareholde
The concept of One Person Company (OPC) in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in an OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP).
A Nidhi Company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the companies Act 2013. Their core business is borrowing and lending money between their members.
NBFC is Non-Banking Financial Company; these companies are involved in providing a wide range of financial services which includes insurance, stock-broking , loans for homes, machinery, mobile phones etc. they even accept deposits from people, but they do not provide conventional banking to them.
Companies incorporated or registered in India are governed by the Companies Act 2013
The Memorandum of Association states the main, ancillary / subsidiary and other objects of the proposed company. The Article of Association contains the rules and procedures for the routine conduct of the proposed company. It also states the authorized share capital of the proposed company and the names of its first / permanent directors. After that Memorandum of Association and Article of Association are required to be stamped.
A stamp duty is required to be paid on Memorandum of Association and Article of Association. The stamp duty depends on the authorized share capital.
Shares must be expressed in a fixed amount. “No par value” or “bearer” shares are not permitted. Shares to be subscribed must be expressed in Indian rupees
Every company is required to appoint an auditor each year at its AGM. An auditor must be qualified by virtue of the Institute of Chartered Accountants of India Act 1949 and completely independent of the company. Audited accounts of the company serve as tool for various stakeholders like creditors, bankers, investors and revenue authorities
The names and personal particulars of the directors and secretary, register of charges, share capital, registered office address etc. must be filed with the Companies Registry for public inspection upon incorporation and if there is any change thereafter
An annual general meeting (AGM) must be held once in every financial year and not more than 6 months after the end of financial year. However, a company need not hold its first AGM until 9 months of the date of closing of first financial year.
B K Goyal & Co Chartered Accountants (CA in Jaipur) - All Rights Reserved.
B K Goyal & Co Chartered Accountant - CA in Jaipur