1. What is a Pvt Ltd company?
- A Pvt Ltd company is a type of privately held business entity that is incorporated under the Companies Act. It has a separate legal identity from its owners and limits the liability of its shareholders.
2. How many shareholders can a Pvt Ltd company have?
- A Pvt Ltd company must have a minimum of 2 shareholders and can have a maximum of 200 shareholders. The shareholders can be individuals or other corporate entities.
3. What is the minimum capital requirement for a Pvt Ltd company?
- There is no specific minimum capital requirement for a Pvt Ltd company anymore. It can be registered with a nominal capital of even ₹1.
4. What is the process of incorporating a Pvt Ltd company?
- The process of incorporating a Pvt Ltd company involves obtaining Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs) for the proposed directors, obtaining a unique name for the company, preparing the requisite documents, filing them with the Registrar of Companies (RoC), and obtaining the Certificate of Incorporation.
5. What are the advantages of a Pvt Ltd company?
- Some advantages of a Pvt Ltd company include limited liability protection for shareholders, separate legal entity status, easy transferability of shares, better access to financing and funding, and perpetual existence.
6. Can a Pvt Ltd company go public and issue shares to the general public?
- Yes, a Pvt Ltd company can go public and issue shares to the general public through an Initial Public Offering (IPO). However, it needs to fulfill certain eligibility criteria and comply with the regulations set by the securities market regulator.
7. What are the compliance requirements for a Pvt Ltd company?
- A Pvt Ltd company needs to comply with various statutory requirements such as holding annual general meetings, maintaining proper books of accounts, filing annual returns and financial statements with the RoC, and adhering to the applicable tax laws and regulations.
8. Can a Pvt Ltd company be converted into another type of company?
- Yes, a Pvt Ltd company can be converted into a public limited company or any other type of company, subject to the relevant provisions of the Companies Act.
1. What is GST?
- GST is a consumption-based tax that is levied on the supply of goods and services. It replaces multiple indirect taxes like excise duty, service tax, VAT, etc.
2. Why was GST introduced?
- GST was introduced to simplify the taxation system and bring about a uniform tax structure across the country. It aims to eliminate the cascading effect of taxes and promote ease of doing business.
3. How does GST work?
- Under GST, taxes are levied at each stage of the supply chain. Businesses collect GST from customers and remit it to the government. They can claim input tax credit for the GST paid on their purchases.
4. What are the different types of GST?
- There are three types of GST in India: CGST (Central GST), SGST (State GST), and IGST (Integrated GST). CGST and SGST are levied by the central and state governments, respectively, on intra-state supplies. IGST is levied on inter-state supplies and is collected by the central government.
5. What are the GST rates in India?
- GST rates in India vary depending on the type of goods or services. The GST rates are categorized into five slabs: 0%, 5%, 12%, 18%, and 28%. Some items like essential commodities may be exempted from GST.
6. Who is liable to pay GST?
- Any person or business involved in the supply of goods or services with an annual turnover exceeding the GST threshold limit (currently ₹40 lakhs for most businesses) is required to register for GST and pay the tax.
7. How to register for GST?
- To register for GST, you need to visit the official GST portal and complete the registration process online. You will need to provide necessary documents and details such as PAN, Aadhaar, business registration documents, etc.
8. What are the benefits of GST?
- The benefits of GST include the streamlining of tax processes, reduction in tax evasion, elimination of multiple taxes and the cascading effect, ease of doing business, and the creation of a single national market.
