Category Private Limited Company

What is the Public Limited Company?

A Public Limited Company in India has all the benefits of a corporate organization jointly with the characteristics of Limited Liability. Registration of a Public Ltd. Company is under the provisions that are specified under the Companies Act, 2013. A public Limited Company can offer shares to the public. A public Limited company gets listed with the stock exchange to increase capital from the common pubic. Directors manage the business in a public limited company and it is possessed by shareholders. The rules and the regulations of a Public Limited company are inflexible and strict as compared with a Private Limited Company. To register a Public Limited Company, it is important to tally all the legal requirements. The number of Directors, Number of shareholders, minimum paid-up share capital is needed to be noticed while registration of a Public Ltd. Company. There are growth opportunities on registration of a Public Limited Company. It is observed to be a separate legal body from the shareholders. The company is controlled by the Board of Directors. The investors elect the Board of Directors.  A Public Limited Company has an everlasting existence and can have its PAN, bank account, licenses, assets and liabilities.

What is the Applicability of the internal audit procedure?

A private Limited Company (Pvt.Ltd) are applicable for internal audit procedures when at some point of time during the financial year, they have outstanding loans or have borrowed from other banks or may be from other financial organizations in that case the internal audit procedure is held. The Applicability of the internal audit procedure can also be held fi the Pvt Ltd Company have a turnover of 100 crore or may be more during the foregoing financial year. An Internal audit procedure refers to the inspection of its books of account to guarantee that they are correct. An auditor is appointed to supervise the audit. The aim of an audit of the Pvt Ltd Company is to allow the auditor to express his or her point of view. In the procedure of an internal audit, the auditor will have to check various books of accounts, vouchers slips and bills or invoices to check if they are accurately and properly maintained. Internal Audits are mostly done to check the status of the company’s finances and examine its operational effectiveness. The internal audit helps the internal management to make required changes to increase the efficiency in their operations of the Company.

What is the Applicability of Corporate Social Responsibility for Private Limited Company?

Corporate Social Responsibility is mostly the concept of Trusteeship. Corporate Social Responsibility is needed for all companies from private Limited company to limited companies.  For the development of the stakeholders, the Corporate Social Responsibility plays a vital role. When an entrepreneur had taken fund from the public, it should be returned back in the same condition as taken from them to run their business. Companies who have a net worth of 500 crore or more, and a turnover of 1000 crore or more, and the net profit of 5 crore or more are those companies who come under the applicability of Corporate Social Responsibility law.  If the amount to be spend for Corporate Social Responsibility does not outdo Rs. 50 lakhs, in that case there is no requirement for the formation of Corporate Social Responsibility, and the function of such committee can be held by the board of the company. The motive of Corporate Social Responsibility is to secure of some activity for the society. Eradicating poverty, hunger, availability of clean drinking water, special education for children, promoting gender equality, women empowerment, setting up of old age home, proper sanitation are some of the policies which fall under the Corporate Social Responsibility.

Difference Between a Partnership Company And a Pvt Ltd Company

The vital difference between the Pvt Ltd Company and Partnership Company is that there is no minimum capital requirement for starting a partnership company and to start a Pvt. Ltd Company minimum Rs. 1 lakh is required to begin.A Partnership Company has no separate identity from its partners, whereas a Private Ltd Company has a separate establishment to own assets in its name. Registration of the private limited company is mandatory to set up a business. Whereas in case of a Partnership company both the registered and unregistered partnerships are legal. A Pvt.Ltd company requires maximum 200 shareholders and minimum 2 to form. A Partnership Company can be formed with 2 partners and members not exceeding above 50 members. If there is any change in members or directors in a Pvt ltd. Company it does not affect the company’s existence. Formation of another partnership firm has be done in case there is any change in partner in a Partnership Firm.  Statutory audit is not applicable in case of a Partnership Firm. The tax audit can be done based on the turnover. A Pvt. Ltd company should appoint an auditor within 30 days of its formation. The ownership in a Pvt Ltd Company can be transferred easily through shares if the shareholders give their permission. In a Partnership firm the ownership is not transferable easily.

What are the Documents Required for Private Limited Company Registration?

Company Documents Required

  • Registered office address proof (Phone Bill, Electricity bill, the gas bill that should not be older than 2 months)
  • Name of the company chosen
  • Percentage of shareholding between subscribers
  • Mobile number and e-mail id of directors
  • Qualification and place of birth of directors
  • The activity of the company
  • Share Capital- Authorized and Paid up.

Director’s Documents Required

  • Copy of Voter Id card/ Driving License/Passport (self-attested)
  • Copy of Pan Card (self- attested)
  • Copy of address proof (Electricity bill, phone bill, a bank statement that should not be older than 2 months)
  • Photographs of Director’s