Private Limited Company Registration – Key FAQs
Find questions and answers related to the registrations, tax filings,
updates, and support.
What do you mean by ‘director’?
A director is a high-ranking person appointed to the board to manage, control, and make key decisions for a company.
Can a minor become a director in a Private Limited Company?
No, a minor cannot become a director.
What is DIN?
DIN (Director Identification Number) is a unique identification number allotted to individuals who wish to become directors of a company.
What do you mean by ‘resident director’?
A resident director is a board member who lives in India for at least 182 days in a financial year.
What do you mean by ‘financial year?
The financial year generally runs from 1st April to 31st March.
Is statutory audit mandatory for a Private Limited Company?
Yes, statutory audit is mandatory, regardless of turnover.
Can a Private Limited Company take loans from banks?
Yes, a Private Limited Company can borrow funds from banks and financial institutions.
Is it mandatory to maintain statutory registers and records?
Yes, companies must maintain statutory registers, books of accounts, and other records as required under the Companies Act, 2013.
What is an authorized share capital?
Authorized share capital is the maximum amount of share capital that a company is allowed to issue to its shareholders.
What is paid-up share capital?
Paid-up share capital is the amount of money actually received by the company from shareholders for shares issued.
[{"question":"What do you mean by \u2018director\u2019?","answer":"A director is a high-ranking person appointed to the board to manage, control, and make key decisions for a company."},{"question":"Can a minor become a director in a Private Limited Company?","answer":"No, a minor cannot become a director."},{"question":"What is DIN?","answer":"DIN (Director Identification Number) is a unique identification number allotted to individuals who wish to become directors of a company."},{"question":"What do you mean by \u2018resident director\u2019?","answer":"A resident director is a board member who lives in India for at least 182 days in a financial year."},{"question":"What do you mean by \u2018financial year?","answer":"The financial year generally runs from 1st April to 31st March."},{"question":"What do you mean by \u2018shareholder\u2019?","answer":"A shareholder (or stockholder) is an individual, company, or institution that owns at least one share of a company\u2019s stock."},{"question":"Can a minor become a shareholder in a Private Limited Company?","answer":"Yes, a minor can hold shares through a legal guardian."},{"question":"Can the same person be a director and shareholder?","answer":"Yes, a person can be both a director and a shareholder in a Private Limited Company."},{"question":"What do you mean by \u2018share\u2019?","answer":"A share represents a tiny unit of ownership in a company. For example, if a company is a pizza, a share is one slice. Buying shares makes you a shareholder, giving you a stake in the company\u2019s profits, losses, and potentially voting rights on company decisions."},{"question":"What do you mean by \u2018capital?","answer":"Capital in a company is the money, assets, and resources used to start, run, and grow the business."},{"question":"Is there any minimum capital requirement to start a Private Limited Company in India?","answer":"No, there is no minimum capital requirement."},{"question":"Is a Digital Signature Certificate (DSC) required for incorporation?","answer":"Yes, DSC is mandatory for directors to digitally sign incorporation documents."},{"question":"Can a Private Limited Company raise funds from the public?","answer":"No, a Private Limited Company cannot invite the public to subscribe to its shares."},{"question":"Is GST registration mandatory for a Private Limited Company?","answer":"GST registration is required only if the company crosses the prescribed turnover limit or engages in taxable supplies requiring GST registration."},{"question":"Can NRIs or foreign nationals become directors in a Private Limited Company?","answer":"Yes, NRIs and foreign nationals can become directors, subject to applicable regulations."},{"question":"Is it mandatory to have a registered office for incorporation?","answer":"Yes, every Private Limited Company must have a registered office address in India."},{"question":"Can a Private Limited Company be converted into another form of business?","answer":"Yes, it can be converted into a Public Limited Company or LLP, subject to legal provisions."},{"question":"What is limited liability in a Private Limited Company?","answer":"Limited liability means the shareholders\u2019 liability is limited to the amount of share capital they have invested in the company."},{"question":"Can a Private Limited Company own property in its name?","answer":"Yes, since it is a separate legal entity, the company can own property and assets in its own name."},{"question":"Can shares of a Private Limited Company be freely transferred?","answer":"No, the transfer of shares is restricted (not prohibited) in a Private Limited Company."},{"question":"Is statutory audit mandatory for a Private Limited Company?","answer":"Yes, statutory audit is mandatory, regardless of turnover."},{"question":"Can a Private Limited Company take loans from banks?","answer":"Yes, a Private Limited Company can borrow funds from banks and financial institutions."},{"question":"Is it mandatory to maintain statutory registers and records?","answer":"Yes, companies must maintain statutory registers, books of accounts, and other records as required under the Companies Act, 2013."},{"question":"What is an authorized share capital?","answer":"Authorized share capital is the maximum amount of share capital that a company is allowed to issue to its shareholders."},{"question":"What is paid-up share capital?","answer":"Paid-up share capital is the amount of money actually received by the company from shareholders for shares issued."},{"question":"Is it necessary to open a bank account after incorporation?","answer":"Yes, the company must open a bank account in its name for business transactions."},{"question":"Can a Private Limited Company open multiple bank accounts?","answer":"Yes, the company can open multiple bank accounts as required for its operations."},{"question":"What is a registered office of a company?","answer":"A registered office is the official address of the company where all legal communications are sent."},{"question":"Can a Private Limited Company change its registered office?","answer":"Yes, the company can change its registered office address by following the prescribed legal procedure."},{"question":"Can a Private Limited Company be closed or struck off?","answer":"Yes, a company can be closed voluntarily or struck off by filing the prescribed forms with ROC."},{"question":"Can a Private Limited Company have a foreign shareholder?","answer":"Yes, foreign individuals or entities can hold shares, subject to FDI regulations."},{"question":"Is a company seal mandatory for a Private Limited Company?","answer":"No, having a common seal is optional under the Companies Act, 2013."},{"question":"Can a Private Limited Company change its name after incorporation?","answer":"Yes, the company can change its name with approval from the ROC."},{"question":"Can a Private Limited Company have branches in different cities?","answer":"Yes, it can open branch offices or additional places of business in different locations."},{"question":"Is it mandatory to file Income Tax Returns for a company?","answer":"Yes, every Private Limited Company must file Income Tax Returns annually, even if there is no business activity."},{"question":"Can a Private Limited Company change its business activities?","answer":"Yes, it can change or add business activities by altering the MOA with ROC approval."},{"question":"Can a Private Limited Company change its directors?","answer":"Yes, the company can appoint or resign directors by filing the required forms with ROC."},{"question":"Can a Private Limited Company enter into contracts?","answer":"Yes, since it is a separate legal entity, it can enter into contracts in its own name."},{"question":"Can a Private Limited Company be voluntarily wound up?","answer":"Yes, a company can be voluntarily wound up according to the provisions of applicable laws."},{"question":"Can a Private Limited Company operate under a trade name?","answer":"Yes, the company may use a trade name or brand name for business activities, while the registered name remains the legal name."}]