The Benefits of Private Limited for Annual Filing in Chennai

The Benefits of Private Limited for Annual Filing in Chennai

A private limited company is a business entity in its own right. Its owners do not have to be personally liable for the debts of the company. Moreover, they can easily transfer their shares to another person or sell the shares to a legal entity. Nevertheless, a private limited company is required to comply with various legal provisions of the Companies Act.

In Chennai, Tamil Nadu, the Registrar of Company regulates the registration of private limited companies. In order to register a private limited company, it is necessary to obtain the Certificate of Incorporation from the Registrar of Companies. After the formation of a private limited company, it is important to maintain its active status.

Private limited companies are also required to file annual returns with the Registrar of Companies. As part of the filing, the company must provide details of its directors and members. These documents must be digitally signed. Moreover, a company's financial statements must be audited.

Besides, private limited companies must comply with the rules of the Ministry of Corporate Affairs. In the past few years, there has been a high rise in the number of startups in India. This has prompted entrepreneurs to come up with a structure of incorporation of private limited companies in Chennai, Tamil Nadu.

The first step to the incorporation of a private limited company is to select the right name. A company name must be unique. Once the company is registered, it must also submit an Article of Association (AoA). An AoA lays down the rights of management and shareholders.